https://www.cnbc.com/2022/09/18/volkswagen-targets-70point1-billion-to-75point1-billion-valuation-in-planned-porsche-ipo.html

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Autos

Volkswagen targets $70.1 billion to $75.1 billion valuation in
planned Porsche IPO

Published Sun, Sep 18 20223:37 PM EDTUpdated 1 Min Ago
WATCH LIVE
Key Points

  * Volkswagen is targeting a valuation of $70.1 billion to $75.1
    billion for luxury sportscar maker Porsche.
  * Volkswagen was expected to announce the pricing range of the
    Porsche IPO, planned for late September or early October, later
    in the evening.

The name of the car manufacturer Porsche is attached to the curved
facade of the newly built Porsche Centre in Magdeburg.
Stephan Schulz | picture alliance via Getty Images

Volkswagen is targeting a valuation of up to 75 billion euros ($75.1
billion) for luxury sportscar maker Porsche, it said on Sunday, in
what will be Germany's second-largest initial public offering (IPO)
in history.

Volkswagen will price preferred shares in the flotation of Porsche at
76.50 euros to 82.50 euros per share, the carmaker said, translating
into a valuation of 70 billion to 75 billion euros.

At the upper 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 Sept. 29,
Volkswagen said.

As part of the listing, 911 million Porsche shares will be divided
into 455.5 million preferred shares and 455.5 million ordinary
shares. Up to 113,875,000 preferred shares, carrying no voting
rights, will be placed with investors over the course of the IPO.

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 as cornerstone investors, at the
upper end of the valuation, Volkswagen said.

"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.

In line with Volkswagen's agreement earlier in September with its
largest shareholder Porsche, 25% plus one ordinary share in the
sportscar brand, which do carry voting rights, will go to Porsche at
the price of the preferred shares plus a 7.5% premium.

Porsche, the holding firm 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.

Total proceeds from the sale will be 18.1 billion to 19.5 billion
euros. If the IPO goes ahead, Volkswagen will call an extraordinary
shareholder meeting in December where it will propose to pay 49% of
total proceeds to shareholders in early 2023 as a special dividend.

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

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