After not quite two and a half years as a stock market-listed company, Covestro (Leverkusen / Germany; www.covestro.com) will move up into the DAX, the German index of 30 blue-chip companies, on 19 March, replacing broadcaster ProSieben. This is the second move upward for the former Bayer MaterialScience, which was elevated to the M-DAX of 50 medium-sized companies two months after its initial listing in October 2015 – see Plasteurope.com of 08.10.2015 and 14.12.2015. The company has also been a member of the STOXX Europe 600 since spring 2016.

Since the initial listing, Covestro’s market capitalisation and free float have increased continuously, prompting the German stock exchange operator, Deutsche Börse, to admit the plastics producer under the fast-entry rule. On 5 March 2018, the company’s free float was around 86%, and its market capitalisation at around EUR 7.6 bn. Thanks to high cash flows last year, Covestro bought back 10% of its capital last year, thereby reducing debt.

The DAX listing is “a further confirmation of the successful development of our company in the recent years and the attractiveness of our share,” said CEO Patrick Thomas. Since the first flotation, former parent Bayer has continuously reduced its shareholding in its former sub-group, accelerating the process since launching its bid to acquire US agrochemicals giant Monsanto for USD 63.5 bn. Bayer now holds 14.2%.