Bilfinger Berger Australia has been renamed Valemus for an IPO launched this week, which it is hoped will raise up to AUS$ 1.3 billion (US$ 1.1 billion) when the offer concludes this July.

The IPO, and Bilfinger berger's aim to sell its entire shareholding in Valemus, is expected to net the German company approximately AUS$ 780 million (US$ 657 million) in cash as it looks to reduce its exposure to the cyclical construction sector.

The IPO will be the biggest in Australia so far this year and will place Valemus as the country's second largest construction and engineering group behind Leighton Holdings, which is majority owned by German contractor Hochtief.

Valemus chief executive Peter Brecht said, "European and Japanese groups had dominated Australia's construction sector and the launch of an independently listed entity was an important development for the sector.

In a separate development, Bilfinger Berger Australia subsidiary Bilfinger Berger Services will change its name to Conneq, a move that managing director Mark Elliott said represented the connection the company provided between industries and communities and vital infrastructure. Conneq will join Abigroup and Baulderstone as the three operating units of Valemus.

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