In what will be the second-largest initial public offering (IPO) in Germany's history, Volkswagen said on Sunday that it aims to value Porsche at up to 75 billion euros ($75.1 billion).
According to the automaker, Volkswagen will value its preferred shares at between 70 and 75 billion euros, or 76.50 and 82.50 euros per share, in Porsche AG's initial public offering.
According to Refinitiv data, at the upper end of the range, first reported by Reuters, it would rank third among all IPOs in Europe. On September 29, trading will start on the Frankfurt Stock Exchange, according to Volkswagen.
911 million Porsche AG shares will be divided into 455.5 million preferred shares and 455.5 million common shares as part of the listing. Over the course of the IPO, up to 113,875,000 preferred shares without voting rights will be distributed to investors.
As cornerstone investors, at the higher end of the valuation, Volkswagen announced that the 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 worth of preferred shares.
"We are now in the home stretch with the IPO plans for Porsche and welcome the commitment of our cornerstone investors," Volkswagen Chief Financial Officer and Chief Operating Officer Arno Antlitz said.
According to the agreement Volkswagen and Porsche SE made earlier in September, Porsche SE will receive 25 per cent of the sports car brand plus one ordinary share, both of which have voting rights, for the price of the preferred shares plus a 7.5 per cent premium.
According to a separate statement made by Porsche SE, the holding company owned by the Porsche and Piech families, debt capital up to 7.9 billion euros will be used to finance the purchase of the ordinary shares.
The sale will bring in between 18.1 billion and 19.5 billion euros overall. If the IPO goes through, Volkswagen will call an extraordinary shareholder meeting in December and propose to distribute 49 per cent of the total proceeds as a special dividend to shareholders in early 2023.
Following the release of a stock exchange prospectus on Monday, institutional and individual investors may subscribe for Porsche shares.
(Source:www.investing.com)
According to the automaker, Volkswagen will value its preferred shares at between 70 and 75 billion euros, or 76.50 and 82.50 euros per share, in Porsche AG's initial public offering.
According to Refinitiv data, at the upper end of the range, first reported by Reuters, it would rank third among all IPOs in Europe. On September 29, trading will start on the Frankfurt Stock Exchange, according to Volkswagen.
911 million Porsche AG shares will be divided into 455.5 million preferred shares and 455.5 million common shares as part of the listing. Over the course of the IPO, up to 113,875,000 preferred shares without voting rights will be distributed to investors.
As cornerstone investors, at the higher end of the valuation, Volkswagen announced that the 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 worth of preferred shares.
"We are now in the home stretch with the IPO plans for Porsche and welcome the commitment of our cornerstone investors," Volkswagen Chief Financial Officer and Chief Operating Officer Arno Antlitz said.
According to the agreement Volkswagen and Porsche SE made earlier in September, Porsche SE will receive 25 per cent of the sports car brand plus one ordinary share, both of which have voting rights, for the price of the preferred shares plus a 7.5 per cent premium.
According to a separate statement made by Porsche SE, the holding company owned by the Porsche and Piech families, debt capital up to 7.9 billion euros will be used to finance the purchase of the ordinary shares.
The sale will bring in between 18.1 billion and 19.5 billion euros overall. If the IPO goes through, Volkswagen will call an extraordinary shareholder meeting in December and propose to distribute 49 per cent of the total proceeds as a special dividend to shareholders in early 2023.
Following the release of a stock exchange prospectus on Monday, institutional and individual investors may subscribe for Porsche shares.
(Source:www.investing.com)
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