Deutsche Bank narrows price range for unit’s IPO

FRANKFURT: Deutsche Bank has narrowed the price range of the initial public offering of its asset management unit, DWS, meaning it will raise less than the 2bil (US$2.5bil) the lender had originally hoped for.

In what is expected to be one of Germany’s biggest listings this year, Deutsche Bank plans to sell up to 25% of the business, or a maximum of 50 million shares.

The new price range of between 32 and

33 per share, announced by bookrunner Morgan Stanley, would raise proceeds of as

much as 1.65bil euros and values DWS at up to 6.6bil (US$8.1bil).

It compared with an initial price range of 30 to 36 euros per share that would have valued DWS at as much as 7.2bil.

The listing of the business has been more than a year in the making and will mark the most tangible milestone yet in chief executive officer John Cryan’s struggle to restructure the flagship German bank.

Deutsche said in March 2017 it would list a stake in DWS as part of a broader overhaul to help it move on from a string of lawsuits and trading scandals.

The IPO has been brought forward as the bank hopes to lock in stock market valuations ahead of any further market correction.

Books close at 1300 GMT today for the offering.

A final issue price is expected to be announced later in the evening, and shares will begin trading on the Frankfurt stock exchange on Friday morning. — Reuters