Volkswagen AG is expected to officially list its commercial vehicles unit Traton AG in the week of June 3 with a reduced size than initially planned, Reuters reported May 28, citing people close to the matter.
On May 13, the German car group said it has resumed preparations for the planned IPO after suspending the plan in March due to market conditions. Volkswagen had said it will proceed with the listing before the summer break.
Most recently, sources told Reuters that the company may float 10% to 15% of Traton in a deal that could be worth €2 billion, valuing the bus and trucks maker at more than €15 billion. Two sources told the news outlet in February that Volkswagen could sell a smaller stake in Traton if markets are rattled by Brexit.
Reuters reported in January that Volkswagen was looking to raise €5 billion to €6 billion from the listing, while Traton CEO Andreas Renschler reportedly planned to sell 25% of the company for more than €6 billion.
Traton, formerly Volkswagen Truck & Bus GmbH, declined to comment while Volkswagen was not immediately available for comment, according to Reuters.