The KION Group has confirmed that it is preparing an initial public offering (IPO) on the Frankfurt Stock Exchange, as flagged recently (Forkliftaction.com News #618).

According to Reuters, KION said on Monday that its main shareholders, funds advised or controlled by majority owners Kohlberg Kravis Roberts & Co LP and The Goldman Sachs Group Inc, would remain invested.

Chinese equipment manufacturer Weichai Power Co Ltd is increasing its stake in KION from 25% to 30% ahead of the offering.

KION Group CEO Gordon Riske says: "The IPO of KION Group will enable investors to participate in a company with a global presence and a leading position within its sector which has steadily improved its profitability and operates in a market which is expected to grow faster than global GDP during the next years."

The company to be listed is currently called KION Holding 1 GmbH and will trade as KION GROUP AG.

Head of corporate communications Michael Hauger said yesterday that the company "could not talk [to Forkliftaction.com News] for legal reasons" as the newsletter originates from Australia.

In results released last week, the KION Group has retained its market share of more than 15% with an order intake of 38,000 units for the first quarter of 2013. Adjusted earnings before interest and taxes grew 2.7% to EUR92.8 million (USD121.4 million).

"This continuous improvement is being driven above all by our enhanced production structures, our cost discipline and the high-margin service business of our brand companies that we are continually expanding," Riske says.

In the first quarter of 2013, customer services, the used trucks business and financial services contributed more than 40% of revenue.