Wacker Construction Equipment AG is planning an initial public offering of its stock on the Frankfurt Stock Exchange this spring. Wacker said the IPO proceeds will be channeled predominantly into expanding its rental business in Central Europe and increasing production capacity in the compact equipment sector.

In fiscal 2006, Wacker increased sales by 23.1 percent, and profit before interest and tax by 51.3 percent to EU 76.7 million (about U.S. $103 million).

Munich, Germany-based Wacker earlier this month announced a merger with Neuson Kramer Baumaschinen AG, an Austrian manufacturer of compact equipment, later this year.

During fiscal 2006, Wacker Corp. has been steadily preparing to enter the capital market. It achieved its targets, improved its market position and profitability and integrated two acquired companies.

“We have our sights set on further sales and profit growth in 2007 and are now ready to press ahead with our IPO,” said Dr. Georg Sick, Wacker CEO and president of the executive board.

Wacker has retained Deutsche Bank, Sal. Oppenheim and UBS Investment Bank as joint global coordinators. The company plans to increase capital and issue a secondary placement. Wacker also expects the IPO to strengthen its already strong market position and drive its international growth strategy.