Volkswagen plans IPO worth USD 75 billion for luxury car maker Porsche

Volkswagen plans IPO worth USD 75 billion for luxury car maker Porsche

Volkswagen AG is reportedly aiming for a valuation of up to USD 75.1 billion for premium sportscar manufacturer Dr.-Ing. h.c. F. Porsche AG, in what will be the second-largest initial public offering (IPO) in Germanys history.

According to the automaker, Volkswagen will value preferred shares between USD 76.39 and 82.38 per share in the IPO, equivalent to a valuation between USD 70 billion and USD 75.1 billion.

Interestingly, as per the German automaker, it would rank as the third-largest IPO in European history, and the trading for the same is expected to begin on September 29 on the Frankfurt Stock Exchange.

It is worth mentioning that 911 million Porsche shares are to be allocated into 455.5 million preferred shares and 455.5 million common shares, as part of the listing. No-voting rights of preferred shares with an issue size of 113,875,000 may be distributed to investors throughout the duration of the IPO.

As cornerstone investors, at the higher end of the valuation, Volkswagen said that the sovereign wealth funds of Abu Dhabi, Qatar, and Norway along with mutual fund firm T. Rowe Price will subscribe to USD 3.67 billion worth of preferred shares.

Arno Antlitz, Chief Financial Officer and Chief Operating Officer of Volkswagen stated that the company was now in the home stretch with its plans for the IPO of Porsche.

The purchase of the common shares will be financed with loan capital totaling up to USD 7.89 billion by Porsche SE, the holding company that is under the control of the Porsche and Piech families.

The deal will bring in between USD 18.08 billion and USD 19.4 billion altogether. Volkswagen is expected to convene an exemplary shareholder meeting in December 2022, with intentions to disperse 49% of the overall funds raised as a special dividend in the first quarters of 2023, assuming the IPO is successful.

Following the release of a stock exchange prospectus, institutional and individual investors will be able to subscribe to Porsche shares.

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Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.