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Germany's RAG mulling IPO pull out

  • German chemicals firm Evonik may pull out of an initial public offering, previously billed as Europe's biggest flotation in more than a year.

    "The performance of financial markets since the end of May has added to the uncertainty whether enough proceeds are achievable that reflect the value of Evonik," said a statement issued by the RAG Foundation.

    RAG owns 75 percent of Evonik with private equity firm CVC owning the remainder.

    Sources close to the matter said Evonik's owners expect the IPO to value the group at nearly $19 billion.

    RAG's board is due to meet on June 18, a day after elections in Greece as they try to assess whether the country will remain in the euro zone.