VW's Traton shares limp on stock market debut (updated)
28/06/2019 09:16
* VW lists 11.5 percent stake in trucks division Traton
* Shares dip following stock market debut
* VW says listing makes expansion steps possible
(Adds comments from VW CFO)
FRANKFURT, June 28 (Reuters) - Volkswagen's VOWG_p.DE
truck unit Traton 8TRA.DE 8TRA.ST made a lacklustre start on
its market debut on Friday as its shares slipped below their
initial public offer price in early trade.
The shares opened at their IPO price of 27 euros ($30.75)
and then slipped slightly to 26.64 euros a share. Germany's
benchmark DAX index was flat.
Weak demand for German listings forced VW to scale back its
IPO of Traton and it priced the offering at the low end of its
target range.
On Wednesday, online fashion retailer Global Fashion Group
slashed its initial public offer price, citing "current market
conditions", in a bid to salvage its stock market listing.
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Volkswagen floated 11.5% of Traton's shares in a scaled back
initial public offering which had initially sought to list a
stake of up to 25% of the shares and put the company's truck
business on an independent footing.
Proceeds from the offering will flow to parent Volkswagen
which aims to use the funding to invest in mass producing
electric cars.
Traton, which includes the MAN, Scania and Volkswagen trucks
businesses wants to create a global trucks operation.
A flotation could give Traton the resources to deepen its
relationship with U.S. truck maker Navistar International Corp
NAV.N , in which it currently owns a 16.85% stake.
Upon being asked whether Volkswagen plans to buy out
Navistar, Volkswagen's Chief Financial Officer Hans Dieter
Poetsch said, "Today's steps make many things possible.
Currently there are no concrete plans."
($1 = 0.8780 euros)
(Reporting by Edward Taylor and Arno Schuetze
Editing by Tassilo Hummel and Susan Fenton)
((Edward.Taylor@thomsonreuters.com; +49 69 7565 1187;))