Volkswagen aims for 75 billion euro valuation in Porsche IPO

Volkswagen will price its preferred shares in Porsche AG’s IPO at a price of between 76.50 and 82.50 euros per share, the automaker said, valuing it between 70,000 billion and 75,000 billion euros.

At the upper end of the range, first reported by Reuters, it would be the third European IPO on record, according to data from Refinitiv. Trading will begin on September 29 on the Frankfurt Stock Exchange, according to Volkswagen.

As part of the listing, 911 million Porsche AG shares will be divided 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 at the time of the IPO.

The sovereign wealth funds of Qatar, Abu Dhabi and Norway and T. Rowe Price will subscribe to 3.68 billion euros of preferred shares as core investors at the top end of the valuation, Volkswagen said.

“We are now on track with Porsche’s IPO plans and the commitment of our core investors is welcome,” said Volkswagen Chief Financial Officer and CEO Arno Antlitz.

In line with Volkswagen’s deal with largest shareholder Porsche SE earlier in September, 25% of the sports car brand with voting rights plus one common share will go to Porsche SE at the preferred share price plus a 7.5% premium.

Porsche SE, the holding company controlled by the Porsche and Piech families, will finance the acquisition of ordinary shares with a debt capital of 7.9 billion euros, it announced.

The total profit from the sale will be between 18,100 billion and 19,500 billion euros. If the IPO goes ahead, Volkswagen will call an extraordinary shareholder meeting in December, where it will propose paying out 49% of total revenue to shareholders as a special dividend in early 2023.

A stock exchange prospectus is expected to be published on Monday, after which institutional and private investors will be able to subscribe to Porsche shares.