Volkswagen Eyes Juicy Valuations For Luxury Car Maker Porsche's IPO

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

Market News and Data brought to you by Benzinga APIs

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga