The estimates for the market value of Daimler Truck range from 25 billion to over 40 billion euros.
(Photo: Daimler AG)
Frankfurt On Friday, Daimler shareholders will become shareholders in another company. The automotive group spun off its truck division Daimler Truck and listed it on the stock exchange.
On this day, the Daimler Truck share will even be listed as an additional company in the Dax, but will be removed from the index in the evening.
By the next regular review of the indices in March at the latest, however, Daimler Truck will be considered a candidate for permanent promotion to the German benchmark index, which has included 40 companies since September.
In the case of the spin-off, Daimler shareholders receive one Daimler truck paper for each two Daimler shares. In the case of spin-offs from DAX companies, it is customary for the sectors that have been brought to the stock exchange to initially appear in the index as additional values for one day. There are technical reasons for this.
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The drive manufacturer Vitesco was most recently listed in the German benchmark index for one day after the spin-off from Continental. This was previously the case with the Siemens spin-offs Siemens Energy (2020) and Osram (2013), the Eon spin-off Uniper (2016) and the Bayer spin-off Lanxess (2005).
The reason why Daimler Truck will initially become a Dax one-day flyer is as follows: On the day of the spin-off, the Daimler share is reduced by the value of the Daimler Truck share. The stock exchange therefore recalculates the value and weighting of the Daimler share and lists the Daimler truck share separately in the Dax as the 41st company for one day. In the evening, the newcomer will be removed from the leading index again.
The estimates for the market value of Daimler Truck range from 25 to over 40 billion euros. Even with a value at the lower end of this range, Daimler Truck would be one of the 25 largest German listed companies. This means that a place in the Dax 40 is relatively safe in the short term.
The company with the highest market value of all outstanding shares is now Linde. At the end of November, the industrial gases company overtook the software company SAP in terms of market capitalization.
Linde was also recently ahead of SAP with a market capitalization of around EUR 147 billion, with a market capitalization of around EUR 141 billion. The currently smallest DAX company by market value with around 8.9 billion euros is the engine manufacturer MTU Aero Engines.
The market value of freely traded shares is crucial
Deutsche Börse reviews the composition of its indices four times a year. The next review date is March 3, 2022. The decisive factor for a rise in the Dax, however, is not the absolute market value, but the market value of the freely traded shares. Blocks of shares of more than five percent that are held by a major investor are not included.
Daimler initially wants to hold 35 percent of the truck division. Nevertheless, Daimler Truck should manage to achieve at least the 40th rank of listed companies in terms of market capitalization in free float, which is necessary for a Dax rise and which in principle meet the requirements for inclusion in an index of the Dax family.
More: These companies will move up to the MDax and SDax before Christmas