has set the price range for the initial public offering of its asset management unit, DWS, valuing the division at up to €7.2 billion ($8.86 billion).
Germany’s largest lender plans to sell up to 25 per cent of DWS, or a maximum of 50 million shares priced between €30 and €36 each.
A sale at such figures would generate between €1.5 billion and €1.8 billion, less than the Frankfurt-headquartered group had hoped for. Still, it will mark a milestone for chief executive John Cryan, as he will deliver his promise to float the unit in well under the two-year time frame he initially announced early last year as part of a broader plan to turn the troubled bank around.
Japan’s Nippon Life Insurance had agreed to acquire a 5 per cent stake in DWS at the issue price as an anchor investor. The firms have also inked a five-year partnership that will see additional assets brought under DWS’ remit, while Nippon Life will be represented on DWS’ board.
Deutsche Bank’s shares were up 0.35 per cent at the time of writing (13:49pm GMT, 12/3/18), trading at €13.08.
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Meanwhile, Deutsche Bank has announced its bonus pool for 2017 would be above €2 billion.
However, the bank’s top executives are waiving their bonuses for last year after being scorned for awarding large incentive payouts despite the bank logging a loss for 2017.
“Variable compensation for the whole bank will be somewhat over 2 billion euros,” Deutsche board member Karl von Rohr told news agency Deutsche Presse-Agentur (DPA).