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- The preferred shares will have a price of 76.50-82.50 euros each
- Total revenues of up to 19,500 million euros
- Porsche listing pointed to September 29
HAMBURG/BERLIN, Sept 18 (Reuters) – Volkswagen ( VOWG_p.DE ) 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 largest in Germany. public offering (IPO) in history.
Volkswagen will price Porsche AG’s listed preferred shares at between 76.50 and 82.50 euros per share, the carmaker said, which will translate into a valuation of 70 billion to 75 billion euros.
At the higher end of the range, first reported by Reuters, it would become Europe’s third-largest IPO on record, according to Refinitiv data. Trading will begin on the Frankfurt Stock Exchange on September 29, Volkswagen said.
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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 course of the IPO.
The sovereign wealth funds of Qatar, Abu Dhabi and Norway, as well as investment fund company T. Rowe Price will subscribe to up to 3.68 billion euros in preferred shares as core investors, at the upper end of the valuation, say Volkswagen.
“We are now at the beginning with Porsche’s IPO plans and we welcome the commitment of our core investors,” said Arno Antlitz, chief financial officer and chief operating officer of Volkswagen.
Under Volkswagen’s deal in early September with its largest shareholder Porsche SE ( PSHG_p.DE ), 25 percent plus one ordinary share in the sports car brand, which does have voting rights, will go to Porsche SE at the price of the preferred shares plus a premium of 7.5%.
Porsche SE, 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 revenue from the sale will be between 18,100 and 19,500 million euros. If the IPO goes ahead, Volkswagen will call an extraordinary meeting of shareholders in December where it will propose paying 49% of total revenue 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.
($1 = 0.9985 euros)
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Reporting by Jan Schwartz and Victoria Waldersee; Additional reporting by Alexander Huebner and Christoph Steitz; Edited by Sabine Wollrab, Frances Kerry, Frank Jack Daniel and Richard Chang
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