Deutsche Postbank flotation planned for June 21

Deutsche Postbank, the banking subsidiary of German state postal service operator Deutsche Post, is expected to be floated on the stock market on June 21. Deutsche Post, is planning to float 49.9 per cent of the capital of its subsidiary on the stock market before the summer recess. Income from the transaction is expected to amount to around 2.5bn euros, and is to be invested in the postal operations of the parent company.

The transaction will primarily target institutional investors. Management has dismissed rumours that Deutsche Bank, Germany’s largest bank, or any other major bank, is to acquire a stake through the flotation. Experts expect an issuing price of between 25 euros and 30 euros per share. They estimate the value of the bank at between 5bn euros and 6bn euros.