In what will be the second-largest initial public offering (IPO) in Germany’s history, Volkswagen is aiming for a valuation of up to 75 billion euros ($75.1 billion) for premium sportscar manufacturer Porsche.
According to the automaker, Volkswagen would 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.
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.
Volkswagen and Porsche SE made a deal earlier in September that Porsche SE would receive 25% 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% premium.
In a separate announcement made by Porsche SE– the holding company owned by the Porsche and Piech families, loan capital up to 7.9 billion euros will be used to finance the purchase of the ordinary shares.
The deal will bring in between 18.1 billion and 19.5 billion euros overall. If the IPO goes through, Volkswagen will summon an extraordinary shareholder meeting in December and propose to distribute 49% of the total proceeds as a special dividend to shareholders in early 2023.
