Cryan me a river

23 March 2018 By Christopher Thompson Follow @CGAThompson

The German bank’s IPO of asset management arm DWS has failed to create value. The rump bank and listed manager are worth at least 3 bln euros less than Deutsche was before the spinoff. The loss shows the limits of corporate rejigging, and upheaval still facing CEO John Cryan.

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Deutsche Bank set the price for the initial public offering of its asset management arm DWS at 32.50 euros a share, valuing the group at 6.5 billion euros, Reuters reported on March 22, citing a statement from DWS.

Deutsche had set a range for the offering of between 30 euros and 36 euros a share. Originally, the bank had hoped to generate proceeds of up to 2 billion euros by selling 25 percent of DWS, giving the unit a value of 8 billion euros. In the end it sold 44.5 million shares, or 22.25 percent of the group, raising 1.4 billion euros.

The IPO is a key part of a multi-year restructuring announced by Chief Executive John Cryan.

Deutsche Bank shares have fallen around 10 percent since March 21 after its finance chief warned that the investment bank would make lower than expected revenue in the first quarter because of currency movements and higher funding costs.

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