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Slow start for Nordex on German stock exchange
1 May 2001
After three weeks on the New Markets section of the German stock exchange, Nordex share prices appear to have settled at around EUR 9.0 -- the lower limit of the preceding book-building period. The original price at which shares were to be offered was EUR 12-13, but this was adjusted downwards in view of the overall fall in global stock market prices, first to EUR 11-14 and finally to EUR 9-11.50. The company, a division of Germany's Borsig Energy, floated 30 million shares -- 70% of its share capital -- on April 2, at EUR 9 a share. This dropped to EUR 7.50 before closing the day at EUR 8.06. Since then the price has had difficulty raising itself above EUR 8-9. The net result is that the value of the 70% of Nordex now on the stock exchange has been halved from the original estimate of more than EUR 500 million. Nordex's two founders, Danish brothers Jens and Carsten Pedersen, share just under 20% of the company. Jens Pedersen is pragmatic about the low share price. "With stock markets at their current levels, particularly those for new technology, it's not surprising," he says.
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