FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) has narrowed the price range of the initial public offering of its asset management unit, DWS, meaning it will raise less than the 2 billion euros ($2.5 billion) the lender had originally hoped for.
In what is expected to be one of Germany’s biggest listings this year, Deutsche Bank plans to sell up to 25 percent of the business, or a maximum of 50 million shares.
The new price range of between 32 and 33 euros per share, announced by bookrunner Morgan Stanley (MS.N) on Wednesday, would raise proceeds of as much as 1.65 billion euros and values DWS at up to 6.6 billion euros ($8.10 billion).
It compared with an initial price range of 30 to 36 euros per share that would have valued DWS at as much as 7.2 billion euros.
The listing of the business 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.
Books close at 1300 GMT on Thursday for the offering. A final issue price is expected to be announced on Thursday evening, and shares will begin trading on the Frankfurt stock exchange on Friday morning.
Reporting by Tom Sims; Editing by Ludwig Burger and Susan Fenton