Evonik Pulls Back IPO, Invests In R&D

Evonik Industries has once again shelved an initial public offering (IPO) of stock. In April, RAG Foundation, which owns about 75% of the firm, said that it was considering an IPO within the next 15 months and that it would make its final decision by the fall. RAG Chairman Wilhelm Bonse-Geuking now says “the uncertainty in the financial and capital markets is bad for the IPO.” Evonik put the brakes on an IPO in 2008 because of the financial crisis. Separately, Evonik has begun construction on two new research facilities in Essen, Germany, that will cost about $42 million combined. One center, specializing in “environmentally friendly” additives and binders for the coatings industry, will be completed by the end of 2012. The other will focus on cosmetic ingredients and open in 2013.