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Report: VW May Launch Traton Truck IPO Next Week
Volkswagen AG could launch an initial public offering next week for a smaller-than-expected portion its Traton AG commercial truck unit.
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Volkswagen AG reportedly plans to launch an initial public offering next week for a smaller-than-expected portion its Traton AG commercial truck unit.
Sources tell Reuters that VW may float only 10%-15% of Traton, which would value the producer of MAN, Scania and VW brand large trucks at some €15 billion ($16.8 billion).
The modest sale size would raise only about €2 billion ($2.2 billion) for the truckmaker. Last summer CEO Andreas Renschler indicated the IPO would be for 25% of Traton and generate three times that amount of funds. But two months ago VW said it was postponing the offering because of unfavorable market conditions.
Reuters’ sources caution that another postponement is possible next week. One source notes that market conditions haven’t changed since March. But another sources adds that a more modest Traton offering would resonate with the market’s apparent preference for smaller offerings and more realistic pricing.
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