Placing the price at a low end initially proved out to be one of the best strategies for the VW
due to which it was able to attract investors and raise an amount of $1.8 billion. This makes
the IPO biggest offering of the year in Europe.
The VW has expected that Traton would be deprived of 11.5 % of the shares which makes it
particularly 27 euros. A value of 13.5 billion euros is estimated for the company that has the
most expensive of the truck companies.
Due to the slow growth of the economy and problems in trade the initial public offerings have
been in a situation of a mixed reception. Also, the company made the decision of selling the
sale foreseeing the market situation which is poor. Becoming active and less centralised was
needed for the VW and this initial public offering of the Traton has been reported as a very
significant towards this cause.
Due to lower rates of interest, the demand has been maintained in the stock markets. Bharti
Airtel Limited is also all set to start the sale of the shares on Friday and the initial offering is
expected to be priced at the lower end of the target.
Bloomberg compiled data due to which European primary offerings have made an 11% return.
These returns include 1.2 billion dollars which as raised by Trainline Plc which is a rail ticketing
company and operates online and the 1.1 billion pound raised by Network international.
About The Offer Demand.
It was the biggest sale of European and also first of all time for Germany. A triton share of 50
million was offered by Volkswagon. Financial officer of Volkswagon said that VW may get into
more share sale at the end of the year. The important fact is that VW has taken a rise of 8% in
Actually, this IPO was a three-year result for Volkswagon. The chairman of VW and Porsche said
that low valuation is an issue and the related questions about the issue the company is facing
are dealt with nicely by the company.
Also, the higher valuation has been given very much importance by the company due to which
chief executive officer of VW has asked for better corporate overhaul and asked the top
executives to work for this.
About The Strategies
VW which is a very large company with a very high number of employees and units all over the
world. The company are looking to explore various strategies for the company which also
include the possibility of another business of the company to go for sale. Man energy solutions
and Renk AG are among the companies which can go for sale. These companies contribute a lot
in the ship and turbine industries by manufacturing diesel engines for them.
The company is reconsidering a lot of aspects off the company's working and planning
strategies for taking major decisions for the company.