Deutsche Bank AG has attracted investor demand for all the shares being offered in the planned IPO of its DWS asset management unit, Reuters reported, citing one of the book runners leading the deal.
The bookbuilding process began March 14 and will end March 22, with the stock's first trading day on the Frankfurt Stock Exchange slated March 23.
The German lender is offering 40 million shares of DWS, representing 20% of the unit's share capital, at €30 to ?€36 per share, valuing the unit at up to €7.2 billion. A further 10 million shares could be offered in an upsize and overallotment option. The total proceeds of up to €1.8 billion is lower than the maximum of €2 billion that Deutsche Bank had reportedly expected.
Japan-based Nippon Life Insurance Co. already committed to take a 5% stake in DWS through the IPO at the issue price. French asset manager Tikehau Capital Partners
Meanwhile, DWS warned March 13 that its governance structure could dent its IPO valuation, the Financial Times reported. The unit, which will operate in form of a KGaA legal structure, or a partnership limited by shares, said the fact that investors may not be familiar with the legal form of a KGaA structure could "adversely affect" the market price of its shares.
DWS also said that Deutsche Bank has agreed to refrain from selling additional shares in the unit for six months after the IPO, Reuters added.
Separately, DWS said it elected Evonik Industries AG CFO Ute Wolf and former BASF SE manager Margret Suckale to become independent members of its supervisory board, alongside Aldo Cardoso, a nonvoting member of Axa Investment Managers' board, Reuters said. Nippon Life Insurance will be represented at the board by Hiroshi Ozeki, according to the report.
