Altair Nanotechnologies Inc fka ALTI

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German ITN Nanovation eyes 50 mln euro IPO -source
Fri May 19, 2006 1:35 AM ET
By Ulf Laessing and Ralf Banser

FRANKFURT, May 19 (Reuters) - German nanotechnology firm ITN Nanovation plans to float in June, selling shares worth up to around 50 million euros ($64 million), sources familiar with the deal said.

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The firm, which makes coatings for power plants for German firms, plans to make an initial public offering (IPO) to finance expansion abroad.

"A debut is scheduled for June," a source told Reuters, adding that a roadshow for investors in Germany and Europe would take place in the same month.

The sources said the IPO would have a volume of roughly 30-50 million euros, adding that up to one-third of the firm would be put up for sale.

The range was based on an assumed market capitalisation of some 200-250 million euros and an expected sale discount for IPO investors, the sources said.

"An amount of 30 million euros is a worst-case scenario," one source said.

ITN Nanovation declined to comment, reiterating only that an IPO managed by HVB and Commerzbank was planned for 2006.

The firm, based in Saarbruecken, posted a loss of 1.6 million euros in 2005 after a loss of 1.8 million euros a year earlier. It hopes to earn profits from the end of 2007, the source said.

Sales rose to 4.8 million euros last year, up from 4 million euros in 2004.

Its closest competitor is U.S. firm Nanophase Technologies (NANX.O: Quote, Profile, Research), which has a market capitalisation of some $109 million, according to Reuters Estimates. Other rivals include Altair (ALTI.O: Quote, Profile, Research) and UK-based Oxonica (OXN.L: Quote, Profile, Research).

The firm's main shareholders are investors such as nanotechnology firm Nanostart (NNSG.DE: Quote, Profile, Research), which together hold some two thirds of the shares. Management and founders of the firm own the rest.

Debuts by firms from the nanotechnology sector, which deals with manipulating materials on a minuscule scale to cut costs, have attracted large interest from investors.