Volkswagen targets $70.1-75.1 billion valuation in planned Porsche IPO


The name of car manufacturer Porsche is attached to the curved facade of the new Porsche Center in Magdeburg.

Stéphane Schulz | photo alliance via Getty Images

Volkswagen is targeting a valuation of up to 75 billion euros ($75.1 billion) for luxury sports car maker Porsche, it said on Sunday, in what will be the second-biggest bid initial public (IPO) in German history.

Volkswagen will value the preferred shares in Porsche’s IPO at between 76.50 and 82.50 euros per share, the automaker said, which translates to a valuation of 70 to 75 billion euros.

At the upper end of the range, first reported by Reuters, it would become Europe’s third-biggest IPO on record, according to Refinitiv data. Trading will begin on the Frankfurt Stock Exchange on September 29, Volkswagen said.

As part of the listing, 911 million Porsche shares will be divided into 455.5 million preferred shares and 455.5 million ordinary shares. Up to 113,875,000 preferred shares, non-voting, will be placed with investors during the IPO.

Sovereign wealth funds of Qatar, Abu Dhabi and Norway as well as mutual fund company T. Rowe Price will subscribe up to 3.68 billion euros of preferred shares as lead investors, at the high end of the valuation, Volkswagen said.

“We are now in the home stretch with Porsche’s IPO plans and welcome the commitment of our major investors,” Volkswagen CFO and COO Arno Antlitz said.

Under Volkswagen’s agreement earlier in September with its largest shareholder Porsche, 25% plus one ordinary share of the sports car brand, which carries voting rights, will go to Porsche at the price of preferred shares plus a premium 7.5%.

Porsche, the holding company controlled by the Porsche and Piech families, will finance the acquisition of the ordinary shares with debt capital of up to 7.9 billion euros, it said in a separate statement.

The total proceeds from the sale will be 18.1 billion to 19.5 billion euros. If the IPO goes ahead, Volkswagen will call an extraordinary meeting of shareholders in December where it will propose to pay out 49% of the total proceeds to shareholders in early 2023 as a special dividend.

A stock prospectus is expected to be published on Monday, after which institutional and private investors will be able to subscribe to Porsche shares.


About Author

Comments are closed.