Hella, the German manufacturer of auto headlights and electronics parts, whose family owners will retain a majority stake of the company until 2024, plans to use the proceeds of the IPO to fund innovation and the company’s international expansion.

The placing of primary shares represented 10% of the enlarged share capital, while a secondary component was provided by the family and represented 4.5% of the post-money share capital. The family will also make 750,000 shares available for a greenshoe option. Based on the pricing for the primary shares, the company has achieved a market capitalization of EUR 2.8bn. If the targeted number of secondary shares is sold and the greenshoe exercised, the free-float will be over 15%.

The flotation was organized by Bankhaus Lampe and Citigroup.

The Luxembourg Stock Exchange also currently lists two bonds from Hella, maturing in 2017 and 2020.

In a similarly structured transaction, the largest German residential real estate company, Deutsche Annington, was successfully listed on Luxembourg Stock Exchange in October 2014. These two recent listings further strengthen the position of the Luxembourg Stock Exchange as the leading centre for international securities.