A statement issued on Sunday said it aims to list 40 million ordinary bearer shares, representing 20% of share capital, at €30 to €36 per share.
Japan’s Nippon Life Insurance Company has agreed to acquire a 5% stake in DWS at the IPO issue price. Blackrock has also been in talks to buy into the IPO, reports Reuters.
In the event of strong demand, Deutsche Bank said it reserved the right to issue an additional 2.4% of share capital, while an additional 2.6% can be placed to cover potential over allotments.
The 25% stake could raise up to €1.8bn.
Deutsche Bank confirmed it was planning to IPO the asset management arm at the end of February.
Revenue growth and profitability
The planned IPO is designed to give DWS “greater visibility and brand recognition” to accelerate future growth, in addition to creating a more “diversified business” that can withstand future downward pressure on margins and “supports revenue growth as well as profitability”.
After listing on the Frankfurt Stock Exchange, it hopes to attract net inflows of 3% to 5% of its opening assets under management per year and maintain a management fee margin higher than, or equal to, 30 basis points in the medium term.
DWS manages €700bn AUM in total, comprising €513bn in active assets and €115bn in passive strategies under its Xtrackers brand, which is the second biggest ETF provider in Europe.
It has professionals across 22 countries worldwide, including Germany where it has a 26.3% market share of the retail market.
Post-separation, Deutsche Bank will remain a long-term distribution channel for DWS. The asset manager has a 10-year distribution agreement with Deutsche Bank, including its retail bank Postbank, as well as a master service agreement, which covers certain administrative services.