Nanogate AG: Share issue price range €28.00 to €32.00

Saarbrücken, 11 October 2006. Shares in Nanogate AG (ISIN DE000A0JKHC9) will be offered at a price range of between €28.00 and €32.00 over a subscription period from 12 to 16 October, with a first Entry Standard listing on the Frankfurt Stock Exchange planned for Wednesday, 18 October 2006. Nanotechnology specialist Nanogate plans to use the IPO proceeds to finance further internal and external growth.

Up to 603,000 shares are on offer, of which the majority – up to 400,000 – are from a capital increase. Up to a further 125,000 existing shares are to be sold. The greenshoe, from existing stock, will be up to 78,000 shares. The free float is likely to amount to about 28% (before the greenshoe, or over-allotment option). On the basis of the middle of this price range the transaction volume will be about €18,1 million (including greenshoe). On that condition the going public will therefore earn the company about € 10,6 million in gross IPO proceeds.

The IPO is supported by the Landesbank Baden-Württemberg as lead manager and sole bookrunner and the Frankfurt investment bank equinet Securities AG as co-lead manager. The public offering is aimed at private and institutional investors in Germany. A private placement in the EU and in Switzerland is also planned. Private investors can subscribe to the share issue at savings banks throughout Germany, at the Baden-Württembergische Bank (BW-Bank) and comdirect Bank AG.

IPO will finance planned internal and external growth

Nanogate AG CEO Ralf Zastrau said that “with the proceeds of going public we plan to continue our profitable growth course of recent years. We are aiming for both internal and external growth with a view to benefiting from the burgeoning demand for products and systems refined by nanotechnology.” Strategic plans include expanding existing lines of business and building up new ones, such as in tribology for minimising friction or wear and tear, along with technology platforms and expansion of development and production capacities. Internationalisation is also to be taken forward. “By acquiring complementary technologies and realising additional shareholdings or joint ventures we aim to strengthen Nanogate’s position as one of the leading international enablers in the field of nanotechnology,” Zastrau added.

Focus on one of nanotechnology’s most attractive segments

In the first half of 2006 Nanogate Group sales increased by 61% to about €3.7 million. Earnings before interest and taxes (EBIT) amounted to about €0.7 million and the EBIT margin was 19.1%. In view of dynamic market growth and the IPO the company is not currently issuing forecasts on the future course of business. Nanogate has many well-known reference customers such as ABB, Giesecke & Devrient, BSH, Kärcher and Koenig & Bauer. The Saarbrücken-based company also cooperates with established international industry partners who are strong on sales, such as US corporations Dow Corning and Ceradyne subsidiary ESK Ceramics. As an enabler Nanogate bridges the gap between manufacturers of the raw materials and their industrial conversion into products on the basis of platform strategies. Nanogate provides the crucial interface for commercialising chemical nanotechnology and thereby does business in one of nanotechnology’s most attractive segments.

IPO facts & figures

Segment:

Open market Entry Standard, Frankfurt Stock Exchange

Symbol::

N7G

ISIN:

DE000A0JKHC9

WKN:

A0JKHC

Subscription period:

12 to 16 October 2006, private investors 15.00 hours CEST, institutional investors 16.00 hours CEST (planned, may be shortened/lengthened)

First listing:

18 October 2006 (planned)

Price range:

€28,00 to €32,00

Transaction volume::

18,1 m (planned, including greenshoe, based on issues price of €30,00)

Total number of shares:

1.9 million ordinary shares (after IPO)

Placement volume:

Up to 400,000 ordinary shares from capital increase Up to 125,000 ordinary shares from sale of existing stock

Greenshoe:

Up to 78,000 ordinary shares from sale of existing stock

Offer category::

Decoupled bookbuilding process with capital increase and sale of existing shares

Shareholder structure:

Free float: 27.63%
Nanogate Technologies GmbH¹: 61.79 %
Nanotec Beteiligungen GmbH²: 10.58 %
(post-IPO, pre-greenshoe)

Holding period:

Nanogate Technologies GmbH: 6 months³, NanoTec Beteiligungen GmbH: 12 months⁴

Designated sponsor:

Landesbank Baden-Württemberg, equinet Securities AG

Consortium:

Landesbank Baden-Württemberg (lead manager and sole bookrunner) and equinet Securities AG (co-lead manager)

Subscription opportunities for private investors:

German savings banks, Baden-Württembergische Bank (BW-Bank), comdirect bank AG

¹ Shareholder of Nanogate Technologies GmbH are mainly venture capital funds (3i, Sal. Oppenheim, equinet ESCFI, SET) and some private investors
²All shares in NanoTec Beteiligungen GmbH held by the Nanogate AG management
³ Sales are only permitted with LBBW's approval
⁴ After a period of six months sales are permitted with LBBW's approval

Disclaimer:

This publication constitutes neither an offer to sell nor an invitation to buy securities. The shares in Nanogate AG (the "Shares") may not be offered or sold in the United States or to or for the account or benefit of "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")). No offer or sale of transferable securities is being made to the public outside Germany. The offer in Germany will be made exclusively by means of and on the basis of a prospectus published and available free of charge at Nanogate AG, Gewerbepark Eschbergerweg, D- 66121 Saarbrücken and will additionally be published on the website of the company at www.nanogate.com

 

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