Volkswagen Group is planning a 10% stake listing for its Traton commercial vehicle unit. The IPO could raise up to EUR1.9bn for VW. Traton is VW's commercial vehicle specialist that includes brands such as MAN and Scania. Earlier this year VW put the partial IPO on hold, but has now concluded the time is right.
The German regulatory authorities have approved the prospectus and the price range for the shares has been set at EUR 27 to EUR 33 per share. Volkswagen and Traton have entered into a cornerstone investor agreement with the Swedish pension fund AMF. The fund has agreed to subscribe Traton shares worth EUR200m. The investment is valid throughout the entire price range. The final number of shares subscribed by AMF depends on the placement price.
VW plans to invest the IPO proceeds in e-mobility – it has a plan to launch a growing range of electric vehicles over the next five years.
Andreas Renschler, CEO of Traton and member of the VW board said: "The whole team at Traton has worked hard and diligently to reach this point. Now roadshow and bookbuilding will begin. We will now meet investors across the globe to convey our Traton story and the future potential of the group. We are confident that we will then be able to ring the Stock Exchange bell before the end of June if the market stays reasonable."
See also: VW resumes preparations for Traton IPO