Volkswagen has completed an IPO for subsidiary Traton today (28 June), placing 57.5 million shares at a price of €27 (£24) each and raising £1.55bn.
Volkswagen remains the majority shareholder in the business, which owns Scania and MAN, having sold 11.5% of the company. It is now listed on the Stockholm and Frankfurt stock exchanges.
The company had previously provided a share price range of between €27 (£24) to €33 each. At €27 per share, the lower end of expectations, Traton has a market capitalisation of €13.5bn.
Hans Dieter Pötsch, chairman of the supervisory boards of Volkswagen and Traton, said: “The successful IPO demonstrates the investors’ trust in Traton’s future.
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“It confirms that Traton and Volkswagen are on the right track and that they are pursuing the right strategies. The IPO will provide a basis for both companies to create additional value for all their stakeholders going forward.”
As this article was published Traton’s shares were down slightly, trading at €26.63.
When Volkswagen announced plans for an IPO of Traton Group in June last year it planned to float up to 25%. However just six months later it postponed the IPO, citing "tough global market conditions". More recently it revived its flotation plan and had looked to sell 15% of the business just earlier this month.
