Deutsche Post confident that flotation of German Postbank will be a success
Deutsche Post, the German postal service, is confident that the planned flotation of Postbank, its banking subsidiary, will be successful, despite the fact that the price range for shares in the bank has been strongly criticised by investors. The price range has been set at 31.50 to 36.50 euros per share. Deutsche Post claims that foreign investors have shown particular interest in the bank so far; however, several major Anglo-Saxon fund companies are reported to find this price range too high.
The subscription period is due to last until June 18, and the bank is to be floated on June 21. The bank is conducting a roadshow this week and next week and is hoping to persuade around 300 investors to buy shares in Postbank; the roadshow is to visit Germany and the UK this week and will then proceed to continental Europe and the US next week. Some analysts believe that the bank may fail in its plans for a flotation in spite of the interest shown abroad, as foreign investors are observing demand for the shares in Germany very closely.
