Deutsche Bank AG's asset management unit, DWS Group GmbH & Co. KGaA, said the placement price for shares offered in its IPO was set at €32.50 per share, valuing the business at €6.5 billion.
A total of 44.5 million existing DWS shares were placed with new investors, representing a total placement volume of approximately €1.4 billion, including 4.5 million shares to cover overallotments. Investors other than Deutsche Bank will end up owning 22.25% of DWS assuming the greenshoe option is fully exercised.
Deutsche Bank had originally targeted an IPO price range of €30 to €36 apiece and planned to list 25% of DWS' existing shares for an expected €1.5 billion to €2 billion.
Japan-based Nippon Life Insurance Co. committed to take a 5% stake in DWS through the IPO at the issue price, while French asset manager Tikehau Capital Partners pledged to spend €250 million on a stake.
DWS' shares are due to begin trading on the Frankfurt Stock Exchange on March 23.