- Volkswagen AG VWAGY targeted a valuation of up to €75 billion ($75.1 billion) for luxury sportscar maker Porsche, marking Germany's second-largest initial public offering (IPO), Reuters reports.
- Volkswagen will price preferred shares in the flotation of Porsche AG at €76.50 - €82.50 per share, translating into a valuation of €70 billion - €75 billion, narrowing the range above the investors' expectations.
- Trading will begin on the Frankfurt Stock Exchange on September 29.
- Also Read: Porsche To Hire Former Mercedes Executive Amidst Potential IPO Plans
- As part of the listing, Volkswagen will divide 911 million Porsche AG shares into 455.5 million preferred and 455.5 million ordinary shares as planned.
- Volkswagen looks to place up to 113.88 million preferred shares with no voting right throughout the IPO.
- The sovereign wealth funds of Qatar, Abu Dhabi, and Norway and mutual fund company T. Rowe Price will subscribe to up to €3.68 billion worth of preferred shares as cornerstone investors at the upper end of the valuation.
- In line with Volkswagen's agreement with its largest shareholder Porsche SE, 25% plus one ordinary share in the sportscar brand, with voting rights, will go to Porsche SE at the price of the preferred shares plus a 7.5% premium as predetermined.
- Porsche SE, the holding firm controlled by the Porsche and Piech families, will finance the acquisition of ordinary shares with debt capital of up to €7.9 billion.
- Total proceeds from the sale will be €18.1 billion - €19.5 billion.
- If the IPO proceeds, Volkswagen will propose to pay 49% of the total proceeds to shareholders in early 2023 as a special dividend.
- Photo via Wikimedia Commons
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