Big stock market flotations are like supertankers – rough seas don’t throw them off course. Take First Data, the U.S. payments processor, bought by private equity firm KKR eight years ago for close to $30 billion. Despite the current roller coaster on global markets, the company went ahead this week with preparations for its initial public offering by announcing the banks that will manage the sale planned for this year.
The flotation is being closely watched in Germany, where it’s seen as a bellwether for a number of German IPO candidates. These include the plastics and adhesive division of pharmaceutical giant Bayer, which will be renamed Covestro and whose flotation is expected to raise at least €2.5 billion, or $2.85 billion. Preparations are still underway regardless of the shock caused by the tumbling Chinese market.