Construction and engineering company Valemus Ltd said today that recent declines on the Australian Stock Exchange (ASX) have effectively slashed the value of its planned listing as its German parent company pushes its sale through an initial public offering (IPO) with value of up to $1.39 billion.

The former Bilfinger Berger Australia comprises of the Abigroup and Boulderstone construction operations and Conneq, formerly known as Bilfinger Berger Services, which deals in engineering maintenance and asset management business.

Company chief executive Peter Brecht said that Valemus is the country's second largest contractor in terms of value in the engineering and construction markets, as he revealed that Valemus is set to issue 555 million shares for a maximum offering of $2.50 each to raise about $1.388 billion.

Valemus chairman Nick Greiner said that the listing has been planned much earlier and was only delayed by Bilfinger Berger AG's decisions to hold off until the passing of the global financial crisis in 2008.

The former NSW premier admitted that their German parent had expressed doubts on the current state of the Australian share market, which is apparently weaker now compared to some months ago.

Mr Greiner said that the price range being offered by the company has been obviously impacted by the weak share market, stressing that "it would be delusionary not to accept that the state of the Australian share market hasn't had an impact."

He said that funds to be raised on the market has been allocated to the European expansion plans of Bilfinger Berger AG since the gains made by the Australian dollar against the euro should prove advantageous for their German parent company.

As of March 31 2010, Valemus holds $5.7 billion of work in hand, coupled with $1,9 billion in contracts spending while company earnings before interest and tax (EBIT) is projected to reach $178 million in calendar 2010, which is an improvement of 9.5 percent from 2009.

The company is looking to net at least $116 million in the same calendar year.