German auto giant Volkswagen offered part of its heavy trucks division Traton on the stock market Friday as it looks to raise fresh capital, in what could be the first step towards reshaping the sprawling 12-brand group. Stock in the unit, which is not listed on any of the German indexes, started at VW's initial price of 27 euros ($30.70) but fell back to 26.45 euros by the market's close. The flotation brought in around 1.5 billion euros.
With Traton, "the second-largest IPO in Europe so far this year has taken place in Germany" after Italian payment processor Nexi, EY analysts noted ahead of the stock market opening. Traton sold some 233,000 vehicles in 2018, with its 81,000 employees bringing in almost 26 billion euros in revenue. It brings together well-known brands MAN (Germany) and Scania (Sweden) as well as VW-branded trucks sold in South America and Africa.
Bosses hope to compete more strongly with Daimler and Volvo by finding savings and pressing for a faster-paced global expansion. VW had already set the price tag for the 57.5 million shares on offer - an 11.5-percent stake - at the very bottom of the range of between 27 and 33 euros it first mooted weeks before, valuing the company at 13.5 billion. In Stockholm, where Traton is also listed, the shares fell to trade at 279 Swedish kronor (26.41 euros, $30.04). The group plans to launch some 70 electric models by 2028, aiming for sales of 22 million units over the coming decade.
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