IPO OF TRATON TRUCK UNIT OF VW EXPECTED TO TOUCH 1.55 BILLION EURO
By D yadav
Date: Jun 29 , 2019
FRANKFURT: Truck unit Traton of Volkswagen is going for initial public offering. The group has expectation to reap 1.55 billion euros (1.39 billion pounds) from this public offering (IPO), priced at the low end of a marketing range, one of the deal's bookrunners said on Thursday.
The final price guidance given to investors was for 27 euros ($30.69) a share, the person said. That would give Traton an initial market capitalisation of 13.5 billion euros.
Pricing usually occurs at the level of the final guidance. The debut in Frankfurt and Stockholm is slated to take place on Friday.
Volkswagen said earlier this month that it aimed to raise 1.55-1.9 billion euros by selling 10%-11.5% of Traton for 27-33 euros a share, having scaled back earlier ambitions to list a stake of up to 25% of the shares to raise 5-6 billion euros.
Volkswagen in alliance with Ford Motor Co. has planned to launch multiple electric vehicle over the coming years.