See also the agricultural division at 25–30 billion, but BASF also has 20 billion in debt... On top of that, the question is how much it will raise, so no euphoria so far.
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@Aktienfox I basically agree with you there. We definitely can’t ignore the debt, and it puts part of the valuation into perspective. Nevertheless, a successful IPO with a valuation of €25–30 billion would, in my view, provide enormous leverage. Even if $BAS were to sell only a portion of its shares, the group would receive a significant inflow of liquidity. Purely hypothetically, this could even be large enough to significantly reduce the debt. Although I don’t expect management to use the funds exclusively for that purpose.
Another point, in my view, is transparency. An IPO would give the agricultural division its own independent market valuation. That could help reduce the valuation discount that large conglomerates often face on the stock market.
As for the euphoria, I agree with you there as well. An IPO alone won’t solve the challenges facing $BAS. For me, however, it’s another building block in the ongoing transformation. And that’s exactly where I think management is currently on the right track. The group is streamlining its operations, freeing up capital, and realigning its strategy. That makes me optimistic for the long term, even if the path ahead will certainly still require patience.
Another point, in my view, is transparency. An IPO would give the agricultural division its own independent market valuation. That could help reduce the valuation discount that large conglomerates often face on the stock market.
As for the euphoria, I agree with you there as well. An IPO alone won’t solve the challenges facing $BAS. For me, however, it’s another building block in the ongoing transformation. And that’s exactly where I think management is currently on the right track. The group is streamlining its operations, freeing up capital, and realigning its strategy. That makes me optimistic for the long term, even if the path ahead will certainly still require patience.
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