The agribusiness industry gave brow-beaten IPO advisers their
second fillip in two days when the shares in KTG Agrar's biogas business
offered investors healthy gains in debut dealing.
Shares in KTG Energie topped E14.57 at one point on their
first day trading in Frankfurt, handing investors in Germany's first flotation
this year a gain of 5%.
The stock eased a little in late deals to stand at E14.289,
a gain of 3.5% for investors who paid the subscription price of E13.80 a share.
"We are proud of the
full placement of our capital issue, which will support our growth plans and,
consequently, an attractive dividend," said Thomas Berger, the chief executive
of KTG Energie, said.
In fact, while investors took up the full 1m new shares in
KTG Energie on offer, only 500,000 of the up-to 1.7m shares up for sale by KTG
Agrar were disposed of.
The deal leaves KTG Agrar, the German farm operator, which had
said its stake would remain at "a minimum" of 55%, with a 75% holding.
The pop to investors contrasts with a string of negative
news on IPO activity, with Facebook shares falling on their debut day, and
declining further since, while companies including jeweller Graff have ditched
However, elsewhere in the agribusiness sector, shares Felda
Global, the Malaysian palm oil firm, on
Friday held on to gains made the previous session, their own debut in a
flotation which raised $3.1bn, making it Asia's biggest IPO of the year.
Felda stock closed up 0.4% at 5.32 ringgit, well above the IPO
reference price of 4.55 ringgit.