German construction group targets major Australian IPO

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Germany's second-biggest construction group, Bilfinger Berger, hopes to raise more than one billion Australian dollars with an initial public offering that would be a big test for the Australian IPO market.

Bilfinger said in a statement sent late on Monday that it had set a price range of between 2.20 and 2.50 Australian dollars per share for the operation.

This would give its Australian subsidiary Valemus a potential market capitalisation of 1.39 billion dollars (950 million euros).

The final price is to be announced on July 8, the group said.

Its Australian activities posted an operating profit of 30 million euros for the first quarter of 2010, a 12-month increase of 50 percent.

Shares in the German group edged 0.13 percent higher in early Frankfurt trading to 45.22 euros, while the MDax index on which they trade was 0.31 percent higher overall.

Speculation about an Australian IPO has already boosted Bilfinger shares.

© 2010 AFP

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