The Frankfurt team advises Citigroup, Jefferies and Commerzbank on first German virtual IPO

Global law firm Norton Rose Fulbright has advised Citigroup, Jefferies and Commerzbank on the IPO of Brockhaus Capital Management AG. It is the first completely virtual IPO on the Frankfurt Stock Exchange.

Brockhaus Capital Management AG‘s shares were admitted to trading on the regulated market of the Frankfurt Stock Exchange, with simultaneous admission to the sub-segment of the regulated market with additional post-admission obligations (Prime Standard).

The issuer Brockhaus Capital Management is a long-term oriented technology group with a focus on high-margin and high-growth technology champions in the German Mittelstand. The transaction comprised a private placement of 3,125,000 new no-par-value shares from a cash capital increase. In addition, 468,750 additional shares were placed in connection with a standard over-allotment option, which were provided by an existing shareholder by way of a securities lending transaction. In order to repay the securities lending, the company granted the syndicate banks a so-called greenshoe option, which allows up to 468,750 new shares to be issued from a cash capital increase.

The total of 3,593,750 shares were placed with institutional investors at a fixed price of €32 per share in the period from 7 to 9 July 2020. If the greenshoe option is exercised, the gross issue proceeds of the company will amount to approximately €115 million.

A capital markets team from Norton Rose Fulbright led by partner Dr. Benedikt Gillessen provided comprehensive advice to Citigroup Global Markets Limited and Jefferies GmbH as joint global coordinators and joint bookrunners, together with Commerzbank Aktiengesellschaft as additional joint bookrunner in connection with the IPO.

Dr. Benedikt Gillessen, partner at Norton Rose Fulbright in Frankfurt, commented on this:

"The IPO of Brockhaus Capital Management is the first fully virtual IPO in Germany. This is a great success and an important milestone for the company, which can now use the proceeds to implement its growth plans and, if necessary, also take advantage of short-term purchase opportunities. It is also a strong signal for the market and its overall receptiveness. Assuming good preparation and an attractive equity story, IPOs are feasible even in the current environment".

The Norton Rose Fulbright team consisted of Dr. Benedikt Gillessen (Partner, Equity Capital Markets, lead), Denis Dräger (Senior Associate, Equity Capital Markets, both Frankfurt), Oliver Polster (Counsel, Corporate, Frankfurt/Hamburg) and Thomas Vita (Partner, US-Equity Capital Markets, London).

The Frankfurt Equity Capital Markets team of Norton Rose Fulbright has extensive experience in advising on complex equity capital markets transactions in Germany and worldwide. The integrated teams advise renowned companies and financial institutions operating in all major financial markets in Europe, the United States, Canada, Latin America, Asia (especially Hong Kong, Shanghai and Singapore), Australia, Africa and the Middle East on all types of ECM transactions from small listings to mid-market listings and international equity issues for large multinational companies. The team has extensive experience in the Financial Institutions, Energy, Infrastructure, Mining and Commodities, Transportation, Technology and Innovation and Life Sciences and Healthcare sectors.