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Volkswagen is offering 10% of its Traton truck unit for and IPO. The company hopes to raise $2.1 billion.

Volkswagen AG is preparing to launch an initial public offering of shares in its heavy truck unit, Traton, that could raise as much as $2.1 billion.

Overall, the Volkswagen said in a statement that it would sell about 10% of Traton at a price that underwriters have pegged at between 27 euros and 33 euros per share in order to raise the offering.

VW announced last month that VW planned to go ahead with the offering. Despite the uncertainty in global markets due to the economic slowdown in Europe and the spiraling trade war between the U.S. and China.

As scheduled, the IPO will take place prior to the company’s summer break. But it has been pared back to 10% rather than 25% of Traton’s shares.

(UAW loses organizing bid at Chattanooga plant. Click Here for the story.)

Andreas Renschler, Traton’s CEO, said in an interview with Bloomberg Television, the IPO and VW’s commitment to loosen its grip will allow Traton to set its own strategy.

“We will now meet investors across the globe to convey our Traton story and the future potential of the group,” Renschler said. “We are confident that we will then be able to ring the Stock Exchange bell before the end of June if the market stays reasonable.”

Volkswagen’s plans to invest cash raised by the IPO to prepare for the launch of dozens of electric vehicles over the coming years and deepens an alliance with Ford Motor Co.

(Click Here for more about Ford and Volkswagen closing in on a second agreement.)

The carmaker is being more cautious about the volume of shares it will place after halting earlier listing plans in March, when it had planned to place a stake of up to 25% on the stock market, citing market conditions.

More shares could be sold subsequently if the IPO is successful, a person familiar with the matter said this month, adding VW would remain Traton’s majority shareholder for the foreseeable future.

The offering will begin on Monday, with management holding a series of investor roadshows. It ends on June 27, with the first day of trading in Frankfurt and Stockholm set for June 28.

(Hippies rejoice: the Microbus is coming back – and this time it will be electric. Click Here for more.)

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