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Deutsche Bank values asset management at up to 7.2 bn euros in IPO

Reuters/Frankfurt 12 Mar 18 | 10:50 PM

Deutsche Bank set the price range for the planned initial public offering of its asset management unit on Sunday, valuing the division at up to 7.2 billion euros ($8.86 billion).

In what is expected to be one of Germany's biggest listings this year, Deutsche Bank plans to sell up to 25 per cent of the business, or a maximum of 50 million shares at a price range of between 30 euros and 36 euros each, it said on Sunday.

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That would raise proceeds of between 1.5 billion and 1.8 billion euros, less than the maximum the bank had initially hoped for. Going into the deal, the IPO had been expected to raise between 1.5 billion and 2 billion euros, valuing the unit at between 6 and 8 billion euros, people close to the matter have said.

The listing of the business, known as DWS, 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.

Deutsche Bank is expected to publish the listing prospectus on Monday.

Deutsche Bank said ‍Nippon Life Insurance Company had agreed to acquire a 5.0 percent stake in the unit at the issue price as an anchor investor.

DWS and Nippon Life have also agreed on a five-year strategic partnership that will see additional assets under management brought under the DWS name. Nippon Life will be represented on DWS's supervisory board.

BlackRock, sovereign wealth funds, and others have been in talks with Deutsche Bank about buying into the IPO.

Some investors have raised questions about the timing of the offering as the economic growth cycle turns and financial markets become more volatile.

Deutsche Bank is global coordinator on the IPO, while Barclays, Citi, Credit Suisse, BNP Paribas, ING, Morgan Stanley, UBS and UniCredit are bookrunners. Commerzbank, Daiwa, Banca IMI, Nordea and Santander are co-lead managers.

March 23 is expected to be the new stock's first trading day on the Frankfurt Stock Exchange.

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