stockmarketwalk Volkswagen confirmed that the preferred shares will be priced in a range of €76.50 – €82.50 per share, which would give Porsche a stock market valuation of €70bn to €75bn.
This would represent the second largest IPO in Germany’s history and the third largest in Europe. The valuation would come close to Volkswagen’s own market cap of €88bn.
The IPO generates revenues of between 8.7 and 9.4 billion euros, it will help fund the electric vehicles switchover and software development.
If the IPO succeeds (the are uncertainties around the governance of companies and the strong control of VW’s largest shareholders), Volkswagen plans to hold an investor meeting to propose a special dividend 49% of total share sale.
As part of the IPO, 911 million Porsche AG shares will be divided into 455.5 million preference shares and 455.5 million ordinary shares. Only preferred shares will be listed.
The holding company Porsche SE (controlled by the Porsche and Piech families) is the largest shareholder in Volkswagen, has already committed to buying 25 percent plus one of the ordinary shares, with a discount of 7.5 percent compared to the preference shares.
The stock exchange prospectus is expected to be published on Monday, after which institutional and private investors can subscribe to Porsche shares.
The subscription period will be offered to European private investors between Sept. 20 – 28 and trading is due to start in Frankfurt on 29 Sept.
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