GfK share price spread ranges from € 15.50 to € 18.50
· The issue volume of Germany´s largest market research company amounts to between € 95 million and € 114 million
· The subscription period is from 14 - 21 September 1999
· Listing launch date scheduled for 23 September 1999
Frankfurt, 14 September 1999. The share price spread of Germany´s largest market research organisation ranges from € 15.50 to € 18.50, it was announced at today´s press conference in Frankfurt. The subscription period for GfK shares starts today and ends on Tuesday, 21 September 1999. The company management will be using its Roadshow to introduce German and international investors to the Company. The no-par stock, which is registered under 587 530, will be officially launched on 23 September 1999, after the issue price announcement scheduled for 22 September 1999.Placement of up to 5.45 million bearer shares is planned. The shares have been created from authorised capital totalling around 4.35 million no-par shares and the sale of around 1.1 million shares by previous shareholders. In addition, there is also a green shoe issue of approx. 0.65 million shares. The listed share capital will total approximately € 66.4 million, or 25.9 million shares after the IPO and the green shoe issue.
Placement will be carried out in the context of a public offering in Germany, alongside private placement abroad. The consortium leaders are the Deutsche Bank AG and Warburg Dillon Read AG. Other members of the consortium are Bayerische Landesbank, SchmidtBank and Dresdner Bank.
Dr. Wübbenhorst, CEO of the GfK AG Management Board, is planning on using the stock exchange launch to give added momentum to international expansion, commenting, ´Globalisation of market research is on the increase. To our clients, the ability to act globally is one of the most important success factors´. The proceeds from going public will be used for activities including further expansion of the international presence of the organisation. Dr. Wübbenhorst added: ´We shall be intensifying our activities, particularly in the USA, Latin America and Asia, through a mixture of strategic alliances, the expansion of existing investments or in some cases, by acquisition´.
The stock exchange launch also provides the opportunity of binding management and employees to the company even more. A stock option program has been developed for management, whilst employees will be given the opportunity of acquiring a preferential allocation and a discount of ten percent during the course of going public.
Market leadership in technology as the key to success
The GfK Group regards itself as a trend setting pioneer in the development of innovative methods and market analysis. In particular, GfK has been able to establish a strong position in ´Nee Electronic Media´, the market of the future.
Dr. Wübbenhorst stated: ´Internet research is a market which offers great potential. The GfK Online Monitor is a good example of an innovative product in this sector. We have just concluded cooperation agreements with the US institute, Media Metrix Inc. and the French research organisation, IPSOS, so that together, we can market a new instrument for media penetration research on the Internet. This moves us a considerable step nearer our target, which is a leading position in all sectors of Internet research´.
GfK set for growth
For years, the GfK Group, Germany´s largest market research organisation, has been achieving double figure growth in terms of total earnings and profits.
According to Dr. Wübbenhorst: ´The success of 1998 has shown us once again that we are well equipped to go public. As our interim results demonstrate, 1999 also is set to be a very successful year´.
GfK is very satisfied with the development of the current financial year. By the end of June, 83 percent of the total order volume planned for 1999 (compared with 77 percent the previous year) had already been covered by orders in hand. According to the interim results as at 30 June 1999, at DM 351.1 million, the overall results (sales plus inventory changes) are far above those for the previous year (DM 290.1 million) The pre-tax profits totalled DM 20.8 million (DM 19.0 million the previous year). In the light of the fact that the interim results for the previous year were positively affected by extraordinary factors, this increase is extremely satisfactory.
Overall, the GfK Group increased its total earnings during financial year 1998 by DM 80.4 million from DM 540.8 million to DM 621.2 million, which represents a rise of 14.9 percent. With pre-tax profits of DM 33.3 million, GfKwas already a clear 25.5 percent up on the previous year in 1998.
The GfK Group is a leading market research organisation in Europa and throughout the world. In addition to fifteen German subsidiaries based in Nuremberg and Frankfurt/Main, the Company has 87 branches and associates in 41 countries worldwide. Of the total 3,600 employees, just under 1,300 are based in Germany.
For supplementary information on the GfK AG Stock Exchange Launch, please contact:
Gavin Anderson & Company
· Christian Weyand, tel. +49 69 9596 10 15
· Elisabeth von Schönborn, tel. +49 69 9596 10 14