June 26, 2019 / 4:11 PM / 5 months ago

Volkswagen's Traton sets price range for IPO at 27-28 euros a share

FILE PHOTO: The logo of Volkswagen's truck unit Traton, former Volkswagen Truck & Bus AG, is pictured in Hanover, Germany September 19, 2018. REUTERS/Fabian Bimmer/File Photo

FRANKFURT (Reuters) - Volkswagen’s truck unit Traton narrowed the price range for its initial public offering (IPO) to between 27 euros ($30.74) and 28 euros a share, the lower end of its earlier 27 euros to 33 euros price range, a bookrunner said on Wednesday.

The books are covered for the full deal size, the bookrunner said. People close to the deal said earlier on Wednesday that the price range for the IPO was expected to be set at the lower end of the marketing range.

Although markets are still receptive to IPOs given low volatility, sentiment for new listings is shaky. Global Fashion Group on Wednesday drastically cut the offering price of its IPO in a last ditch bid to woo investors.

Volkswagen said earlier this month it aimed to raise 1.55-1.9 billion euros ($1.8-$2,2 billion) by selling 10%-11.5% of Traton, having scaled back earlier ambitions to list a stake of up to 25%.

The carmaker plans to invest proceeds in transforming its auto production as it readies the launch of dozens of electric vehicles over the coming years and deepens an alliance with Ford Motor Co.

Reporting by Edward Taylor and Arno Schuetze; Editing by Douglas Busvine and Mark Potter

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