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UPDATES share price
German tank gearbox maker Renk’s shares jumped on its return to the Frankfurt Stock Exchange on Wednesday, highlighting growing investor appetite for the defence industry as Russia wages war in Ukraine.
Shares in the Augsburg-based company were trading above 19 euros ($20) at the end of the day, well above the IPO price of 15 euros that valued Renk at over 1.5 billion euros.
Most of the company’s contracts are in the defence sector, where order books are currently overflowing. But Renk’s products also include components for the hydrogen and heat pump sectors, considered crucial to the shift towards green energy.
The stock market entry “opens up new prospects for sustainable growth in the defence sector, but also in the area of the energy transition,” said Renk CEO Susanne Wiegand.
Founded in 1873, the company employs some 3,400 people and has annual revenues…
