Drägerwerk
AG & Co KGaA, a German manufacturer of
medical technology (e.g. ventilators, anaesthesia devices, patient monitors,
etc.) as well as safety technology products
(e.g. face masks), has issued one million
new preference shares in the equity capital markets to raise €76.5 million. Proceeds
from the capital increase will be used to support the scaling up of production
during the Covid-19 pandemic and to strengthen the equity base and liquidity.
The
shares were offered in a private placement to institutional investors and the
transaction was multiple times oversubscribed, highlighting the role investors
are playing in supporting corporates during the coronavirus crisis. BNP Paribas
Global Banking teams supported Drägerwerk throughout the book-building process,
acting as joint global coordinator.
The capital increase will be used to support the scaling up of production during the Covid-19 pandemic and to strengthen the equity base and liquidity.
Given
the company’s vital role in producing and maintaining critical healthcare
infrastructure, Drägerwerk has seen a 177% increase of orders (net of currency
effects) in its medical division in Q1 2020 vs Q1 2019. In light of the high
order intake resulting from the Covid-19 pandemic, accessing the equity markets
for fresh capital has been an important financial lever to address the current
situation.
Drägerwerk’s
state-of-the-art factory in Lübeck, combined with flexible working hours and
innovative labour organisation models, have allowed the firm to significantly
increase output of ventilators.
According
to the World Health Organisation, there are over 3.5 million confirmed
coronavirus cases globally, as of 5 May 2020. 
