IPO in the second attempt: VW subsidiary Traton disappointed in IPO

Traton besteht aus den VW-Töchtern MAN und Scania sowie der brasilianischen Nutzfahrzeugtochter

Volkswagen

Traton consists of the VW subsidiaries MAN and Scania and the Brazilian commercial vehicle subsidiary

Did Andreas Renschler want too much? Instead of the initially expected six billion euros in proceeds from the issue, Traton’s IPO plays just over a quarter of it in the fund. Volkswagen’s truck and bus business is considered a candidate for the MDax, but on the first trading day, the papers slip temporarily below the issue price of 27 euros.

The Volkswagen truck subsidiary Traton made it to the stock market on the second attempt. 57.5 million shares were placed at 27 euros – and thus at the lower end of the price range, which was up to 33 euros, said Traton on late Thursday night. At the issue price, the parent company of the truck and bus manufacturers MAN and Scania is valued at 13.5 billion euros – much less than the previously expected up to 24 billion euros.

VW takes with the IPO of his daughter 1.55 billion euros. Today Traton celebrates the stock market debut in Frankfurt and Stockholm. In early trading, the shares slid even below the issue price and fell at times down to 26.6 euros per share.

Actually, Volkswagen had wanted to bring the truck division to the stock market before Easter. However, the project was surprisingly put on ice with reference to the weak market environment in March. After much back and forth, the Wolfsburg-based company decided to make a fresh start, but cut back on goodwill and issuing volume.

Traton: Interview with VW truck boss Renschler

Volkswagen is now only 11.5 percent of Traton in foreign hands. Traton CEO Andreas Renschler had initially projected a revenue of up to six billion euros for a share of 25 percent. Investment bankers described this as too ambitious.

Traton’s first classic IPO in the regulated market this year

Volkswagen remains open to later throw more Traton shares on the market. In the medium term, the commercial vehicle group is considered a candidate for the minor value index MDax. The proceeds from the IPO flow solely to Volkswagen. The money should flow into the expansion of the business with electric cars. The Wolfsburg want to accelerate the turnaround to the electric drive under the pressure of harsher climate targets for the car industry in Europe.

With the initial public offering Traton should also gain more room for maneuver for expansion in the United States. So far, however, apparently not decided whether Traton wants to take over the US truck farmer Navistar completely.

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The environment for first-time issuance has deteriorated significantly. So far this year, Traton is the only classic IPO in the tightly regulated Prime Standard of the Frankfurt Stock Exchange. Fashion retailer Global Fashion Group hopes to follow on Tuesday. By extending the subscription period and lowering the issue price, the company, which owns start-up investors Rocket Internet and Kinnevik, plans to save its IPO.

rei / Reuters

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