Deutsche Bank has confirmed the planned initial public offering its rebranded €700bn asset management division, DWS on Frankfurt stock exchange next month.
The group announced in December that it aims to raise about €2bn by listing a quarter of the business, implying that the total worth of the new DWS KGaA would be in the range of €8bn.
Deutsche now confirmed that it aims to deliver net inflows of 3-5% and a cost income ratio of less than 65% as well as a dividend payout of 65-75% of net income.
Deutsche Bank’s asset management division currently consists of Deutsche Asset Management which covers the institutional and wholesale market, and DWS, which covers the retail market.
Ahead of the IPO, Deutsche Asset Management will merge into the retail offering with both sides of the business now to be marketed under the DWS brand. A spokesperson of Deutsche Bank confirmed to InvestmentEurope that the rebranding is expected to be completed at the end of March 2018.
The new DWS unit will change its German legal structure from being a subsidiary (Societas Europeae or SE) to a GmbH & Co. Kommanditgesellschaft auf Aktien (KGaA), a form of limited partnership which restricts the influence of minority shareholders.
The new DWS unit covers €513bn in active assets, €71bn in alternatives, and €115 billion in passive investment vehicles.