Deutsche Bank set for £1.8 billion flotation of asset management arm
It is understood that the IPO could take place near the end of March and consist of around 25% of Deutsche Bank’s holding in DWS.
Deutsche Bank has announced plans to float its asset management unit DWS on the Frankfurt market in a move expected to raise up to 2 billion euro (£1.8 billion) for the German lender.
The unit was earmarked for flotation last year, with Deutsche Bank setting a two-year timeline for the initial public offering (IPO) in the wake of a rebranding.
Deutsche Bank said the flotation will consist purely of the sale of shares from the stake it already holds via one of its subsidiaries – rather than the creation of new shares.
It is understood that the IPO could take place near the end of March and consist of around 25% of Deutsche Bank’s holding in DWS which has approximately 700 billion euro (£614 billion) in assets under management.
The planned IPO will give us the opportunity to unlock the full potential of DWS for clients and employees, while targeting attractive returns for our shareholders Nicolas Moreau, DWS chief executive
Deutsche Bank chief financial officer James von Moltke said DWS would “gain visibility and agility” as a result of the listing.
“DWS’s clients, employees, as well as its shareholders, including Deutsche Bank, will stand to benefit.”
It comes just weeks after Deutsche Bank reported a 497 million euro loss (£436 million) for full year 2017 – marking a third consecutive loss for the lender – having been knocked by falling revenues from its investment bank division and the US tax reform.
However, chief executive John Cryan assured that the bank was “firmly on the path to producing growth and higher returns” thanks to restraint on both costs and risks.
While the Deutsche Bank has been making progress, the chief executive admitted he was not yet satisfied with the results.
Commenting on the flotation, DWS chief executive Nicolas Moreau said: “The planned IPO will give
us the opportunity to unlock the full potential of DWS for clients and employees, while targeting attractive returns for our shareholders.
“We are very proud to be one of the leading asset managers in Europe and globally.
“We look forward to bringing our strong, truly global investment platform and over 60 years of investment experience to the public markets.”
DWS describes itself as one of the top asset management firms in Europe with a 26.3% share in the retail segment in Germany, though its 900 investment staff serve clients across Europe, the US and Asia.