VW aims to raise $2B from truck unit IPO

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VW surprised investors last month when it revived its effort to float Traton just weeks after shelving the plan in March.

The sale will mark a litmus test not only for IPO demand in a European stock market that turned in its worst month in 3 1/2 years during May, but also for the ability of VW’s management to push through deeper structural change.

“We are now all set for the decisive phase,” VW Chief Financial Officer Frank Witter said in the statement. “The IPO is driven by the aim to create value for our stakeholders.”

The base offer will be 50 million shares, with a possible over-allotment of as many as 7.5 million shares, subject to the use of a so-called green-shoe option for rights to additional stock, VW said.

Trading is set to start on June 28 and the company is targeting a free float of 10 percent to 11.5 percent of Traton’s shares, scaling back earlier ambitions to list up to a quarter of the unit.

The offer period for the share sale is set to begin on June 17 and end on June 27.

VW CEO Herbert Diess, who took over the job a little more than a year ago, earlier Thursday addressed 500 top executives near VW’s corporate headquarters in Wolfsburg, Germany, and stressed the urgency of his push to make the transportation giant less centralized and more agile to navigate an unprecedented industry transformation.

Reuters and Bloomberg contributed to this report

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