Deutsche Bank Pushes Ahead With a $2.3 Billion Offering

Updated on
  • Barclays, Citi, Credit Suisse appointed senior bookrunners
  • IPO is key part of capital raising plan announced in March

The headquarters of Deutsche Bank stand in Frankfurt.

Photographer: Krisztian Bocsi/Bloomberg

Deutsche Bank AG expects to raise about 2 billion euros ($2.3 billion) from selling a quarter of its asset management business in an initial public offering, according to people familiar with the matter.

The partial offering would value the unit at about 8 billion euros and account for substantially all the capital the bank had expected to raise through asset sales under a turnaround plan unveiled in March. Germany’s largest bank will be the sole global coordinator, and plans to pick Barclays Plc, Citigroup Inc. and Credit Suisse Group AG as senior bookrunners, said the people, asking not to be identified because the sales process hasn’t been officially started.

“As we announced in March of this year, we aim to complete a partial IPO within 24 months,” Deutsche Bank said in a statement. “We plan to confirm the banking syndicate at the point in time we formally launch the IPO marketing process.”

Officials for Citigroup and Credit Suisse declined to comment. Barclays didn’t immediately return a call seeking comment.

Deutsche Bank Chief Executive Officer John Cryan in March announced plans to float a minority stake of the asset management business as the key piece in a series of disposals to raise about 2 billion euros in total, supplementing an 8 billion-euro capital increase in April. As part of the plan, Deutsche Bank also wanted to sell its Spanish retail operation, but ended the process after it couldn’t get the right price, a person briefed on the matter said last month.

Shares Rise

Deutsche Bank’s shares extended gains on the news, rising 3.1 percent to 15.46 euros in Frankfurt and erasing losses for the year.

The Frankfurt-based lender also plans to name UBS Group AG, BNP Paribas SA, Morgan Stanley, UniCredit SpA and ING Groep NV as junior bookrunners, said the people. Officials for the banks declined to comment.

Nicolas Moreau, a 52-year-old Frenchman who took over the helm of Deutsche Asset Management last year, is shaking up the business after a yearlong review to prepare it for the IPO. Last month, he named Pierre Cherki, head of alternative assets, and Stefan Kreuzkamp, chief investment officer of active products, to co-head the investment group.

James von Moltke, the bank’s chief financial officer, said last month that the IPO plans remain “well within” the original timeline, which called for a share offering by early 2019. The offering may happen as early as the first half of next year, according to people familiar with the matter.

— With assistance by Steven Arons, Patrick Winters, Sonia Sirletti, Fabio Benedetti Valentini, and Stefania Spezzati

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