Volkswagen will set the price of Porsche AG’s preferred shares at €76.50 to €82.50 per share, translating to a valuation of €70 billion to €75 billion, according to the automaker.
At the high end of the range originally reported by Reuters, it would be the third largest IPO in Europe, according to Refinitiv data. Volkswagen says it will start trading on the Frankfurt Stock Exchange on September 29th.
As part of the listing, 911 million Porsche AG shares will be split into 455.5 million preferred shares and 455.5 million ordinary shares. Up to 113,875,000 non-voting preferred shares will be offered to investors during the IPO process.
Volkswagen said Qatar, Abu Dhabi and Norway sovereign wealth funds and mutual fund firm T. Rowe Price will underwrite up to €3.68 billion worth of preferred stock as the lead investor once valuation caps are reached It’s a schedule.
Volkswagen Chief Financial Officer and Chief Operating Officer Arno Antitz said: “We are now on track with Porsche’s IPO plans and welcome the commitment of our foundational investors. I’m here.
In line with the September agreement between Volkswagen and its largest shareholder Porsche SE, 25% plus 1 ordinary share in the voting sports car brand, plus a 7.5% premium to the price of the preferred stock. transferred to the Porsche SE at a price.
Porsche SE, the holding company controlled by Porsche and the Pieci family, will fund the acquisition of ordinary shares with debt capital of up to €7.9 billion, said in a separate statement.
Total proceeds from the sale will be between €18.1 billion and €19.5 billion. If the IPO goes ahead, Volkswagen plans to convene an extraordinary shareholder meeting in December and propose to pay his 49% of total earnings as a special dividend to shareholders in early 2023.
A stock exchange prospectus is due to be issued on Monday, after which institutional and individual investors can purchase Porsche shares.
