Just over two months ago, Germany’s Volkswagen AG pulled the plug on its stated plan to going public with its truck-making subsidiary, Traton SE. Formerly known as Volkswagen Truck & Bus, Traton Group is a wholly owned subsidiary of VW.
At the time, on March 13, VW blamed the decision to halt on a “difficult market environment,” but with the company’s Board of Management stating that it was still aiming for an IPO “once market conditions had improved.”
Apparently, they have. The global car and truck maker announced on May 13 that it is resuming preparations for an initial public offering of Traton, with progress to be made “depending on further developments on capital markets.”
“We have always clearly reiterated our intention to pursue an IPO,” said Frank Witter, Volkswagen AG board member responsible for Finance and IT. “Current market assessments have encouraged us to take today’s decision.”
Andreas Renschler, CEO of Traton SE and a member of the VW Board of Management, of Volkswagen AG, said: “Traton SE and our entire team are very well placed to resume preparations for a swift IPO. Our groundwork has been excellent, and we are now fully focused on a potential IPO before the summer break.”
Back in March, the decision to postpone a spring flotation of Traton surprised some market analyst,s who called it a “near-term disappointment.” According to analysts at Loom Capital, the move was spurred by poor market conditions and slowing fundamentals in Europe and China. That was likely in reference to the Brexit conundrum in the United Kingdom and the trade conflict between the U.S. and China, according to a Reuters report.
Frank Witter, Volkswagen AG Board member responsible for Finance and IT, commented: “We have always clearly reiterated our intention to pursue an IPO. Current market assessments have encouraged us to take today’s decision.”
Andreas Renschler, Chief Executive Officer of Traton SE and a member of the Board of Management of Volkswagen AG, said: “Traton SE and our entire team are very well placed to resume preparations for a swift IPO. Our groundwork has been excellent, and we are now fully focused on a potential IPO before the summer break.”
In a Feb. 20 statement, Traton stated that it "maintained its growth path" last year, achieving a vehicle sales increase of 14% by delivering a record 233,000 commercial vehicles across its MAN, Scania, and Volkswagen Caminhões e Ônibus brands.
That sales level was the highest notched since Traton was established in 2015. The OEM said the gain was “driven partly by continuing robust growth in Europe and sharply rising demand in Brazil.” The company noted that growth was “very dynamic in the first six months of 2018, but weakened slightly” in the second half of the year, coming in at 10% in the fourth quarter.
Originally posted on Trucking Info