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VW aims to raise 1.9 billion euros from truck unit IPO

Published 14/06/2019, 07:36
© Reuters. FILE PHOTO: The logo of Volkswagen carmaker is seen at the entrance of a showroom in Nice
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FRANKFURT (Reuters) - Volkswagen (DE:VOWG_p) said on Friday that it aims to raise up to 1.9 billion euros (£1.7 billion) by floating a stake of at least 10% in its Traton trucks unit later this month, its second attempt to bring the business to market.

The stake size is at the bottom end of a range of 10%-20% that sources had earlier indicated.

The German carmaker said in a statement that the offering would be priced at 27-33 euros per share and create a free float of 10-11.5%, depending on whether banks running the initial public offering exercise an over-allotment option.

VW seeks to capitalise on the premium that truck stocks command over autos, and create an acquisition currency.

It plans to invest the proceeds in transforming its auto business, as it readies the launch of dozens of electric vehicles. It has shown interest, meanwhile, in U.S.-based truck maker Navistar.

The carmaker is being more cautious about the volume of shares it will place after halting earlier listing plans in March, when it had planned to place a stake of up to 25% on the stock market.

© Reuters. FILE PHOTO: The logo of Volkswagen carmaker is seen at the entrance of a showroom in Nice

The share offering, which values Traton at between 1.55 billion and 1.89 billion euros, will begin on Monday and close on June 27. First trading is set for June 28.

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