Holtzbrinck doubles share order in Springer Nature IPO

The Holtzbrinck Publishing Group (HPG) has doubled its share order in the planned initial public offering of Springer Nature, from €100m to €200m.

While the Group’s initial €100m order has been guaranteed, the second order "will be considered in the normal allocation process”, Springer Nature noted in a statement.

Springer Nature is looking to raise €1.2bn in the Frankfurt Stock Exchange listing, as a partnership limited by shares. Up to 112,999,554 new shares will be issued, at a price between €10.50 and €14.50; meanwhile BC Partners is selling shares, but Holtzbrinck is retaining its original stake. Final decisions on the number of shares and the offer price are being made today (Monday 8th May). Trading begins tomorrow (Tuesday 9th May).

When Springer Nature was created via a merger in 2015, it was with Holtzbrinck taking a majority 53% ownership, controlling Springer Nature jointly with private equity firm BC Partners.

According to the Financial Times, following the IPO Holtzbrinck's percentage stake will fall below 50%, but it will still have controlling power over Springer Nature because a partnership limited by shares limits the rights of external shareholders.

Springer Nature has said it will use the primary proceeds of the IPO to reduce debt. Confirming the IPO last month, Springer Nature c.e.o. Daniel Ropers said: "We have a track record of constantly improving and innovating in the academic research publishing process. The intended IPO will help us to accelerate our journey going forward."

The publisher generated €1.64bn in revenue in 2017, a year-on-year increase of 2.5%.