Volkswagen has determined the price range and offer structure for the upcoming Initial Public Offering (IPO) of its commercial vehicle arm Traton.
As well as commercial vehicles, Traton will be incorporating VW Truck & Bus, MAN and Scania. The price range for the shares has been set at €27.00 to €33.00 per share. The first day of trading for Traton shares is expected on June 28, 2019, although the offer is subject to the approval of the securities prospectus by the German Federal Financial Supervisory Authority, which is expected in the coming days. The offer period is expected to begin on June 17, 2019 and to end on June 27, 2019.
Frank Witter, chief financial officer of Volkswagen, said: “I am pleased that we have reached another milestone on Traton’s route to the IPO. We are now all set for the decisive phase. The IPO is driven by the aim to create value for our stakeholders.”
Andreas Renschler, chief executive officer of Traton and member of the board of management of Volkswagen, said: “We are confident as we are heading for the finishing line. A strong team effort has brought us here. We believe Traton is an attractive investment and feedback from investors and analysts strengthens this belief.”
As well as Traton and Volkswagen, further OEMs have been giving certain business lines more freedom of action by turning them into standalone entities. Fiat Chrysler is looking at a spinoff for parts maker Magneti Marelli. At Daimler, passenger car and large vehicles manufacturing operations will be brought under dedicated divisions, with the company’s captive finance arm providing a third pillar under the name Daimler Mobility.
At the beginning of this year Volkswagen AG and Ford Motor Company made formal agreements to work together in producing commercial vehicles globally.
The manufacturers said the broad alliance would position the companies to boost competitiveness and better serve customers in an era of rapid change in the industry.
Volkswagen chief executive Herbert Diess and Ford chief executive Jim Hackett said in a release that the companies intend to develop commercial vans and medium-sized pickups for global markets beginning as early as 2022.