Not for distribution, directly or indirectly, in or into the United States, Australia, Canada or Japan

Covestro debuts on the stock market

  • Emission volume of EUR 1.5 billion
  • Further step toward independence

Covestro AG, one of the world's leading polymer manufacturers, has debuted on the stock market. Since Tuesday, shares in what was formerly Bayer MaterialScience have been traded on the Frankfurt Stock Exchange. The IPO represents another important step for Covestro as an independent entity. The company plans to use the gross proceeds of EUR 1.5 billion to repay its debt to the Bayer group and thus achieve the targeted investment-grade rating.

Covestro's shares are now listed in the regulated market segment (Prime Standard). They are held by an international investor base comprising mainly institutional investors. The listing was preceded by a bookbuilding process lasting for two weeks - in an increasingly deteriorating and volatile capital market environment.

"We are proud to now be a listed company," said Covestro CEO Patrick Thomas. "It puts us in an even better position than before, enabling us to build on our strengths in the global competitive arena. We intend to share our business success with our investors and will therefore pay them a dividend from the start."

Ringing the bell and a plastic bull

Thomas and CFO Frank H. Lutz were on the trading floor at the Stock Exchange to celebrate the initial share price in the traditional way - by ringing the bell. To reflect Covestro's colorful new image, the trading floor was decorated with thousands of colored beakers and a sculpture of a bull to symbolize increasing share prices - all specially made from high-performance polycarbonate, one of Covestro's main products. The company also develops and manufactures components for high-quality polyurethane foams, for coatings, adhesives and sealants, and for specialty products. These are used in many key industries such as the automotive, construction and electronics industries. They are thus found in almost all areas of modern life.

Covestro has been legally and economically independent since September 2015. Following the listing, Bayer (formerly the sole shareholder) holds some 69 percent of shares. The remainder are in the free float.

About Covestro:

With 2014 sales of EUR 11.7 billion, Covestro is among the world's largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and sports and leisure industries. The Covestro group has 30 production sites around the globe and employed approximately 14,200 people at the end of 2014. Covestro, formerly Bayer MaterialScience, is a Bayer Group company.

Forward-looking statements

This investor news may contain forward-looking statements based on current assumptions and forecasts made by Covestro Deutschland AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro's public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Important information

This information is not intended for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia), Australia, Canada or Japan. This information does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The shares mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act").

The shares may not be offered or sold in the United States, except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of the shares in the United States.

In the United Kingdom, this information is only being distributed to and is only directed at (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such Shares will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

This publication constitutes neither an offer to sell nor a solicitation to buy securities. The securities have already been sold.