Car Parts Listing

Schaeffler IPO Could Be Germany's Biggest

Schaefflers dpa
The IPO will mean Georg Schaeffler and his mother, Maria-Elisabeth Schaeffler-Thumann, will relinquish some of their power at the family's auto supplier.
  • Why it matters

    Why it matters

    A successful share sale could enable car parts maker Schaeffler to fully emerge from a failed, debt-funded takeover of rival Continental in 2008.

  • Facts


    • The company was founded by the Schaeffler brothers in 1946. In 1964, it expanded to the United States.
    • It still owns 46 percent of Continental, a tire and car-parts giant, and competes with Bosch of Germany, Canadian-Austrian firm Magna and Japan’s Denso.
    • Maria-Elisabeth Schaeffler-Thumann and her son Georg F.W. Schaeffler currently own Schaeffler.
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Schaeffler, the family-owned German maker of ball bearings and car parts, is planning to sell shares worth up to a quarter of its value in what could become the biggest German IPO this year.

The listing, scheduled for October 5, will see existing and new shares equivalent to 25 percent of its capital floated on the Frankfurt Stock Exchange, the company said in a statement on Monday.

Schaeffler, which supplies carmakers such as GM, said it wants to use the money to pay down debt. The firm and its parent company Schaeffler Holding took on billions of euros of loans in 2008 in an attempt to buy rival Continental. The deal failed due to the financial crisis, but Schaeffler still owns 46 percent of Continental.

The share sale could fetch as much €3 billion, or $3.4 billion, Bloomberg reported, citing people familiar with the matter. Reuters also reported the initial public offering could surpass the share listing of Covestro, the spin-off of Bayer’s materials division.

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