Porsche expects to raise €9.4 billion in IPO

Volkswagen announced that it plans to list Porsche shares on the Frankfurt stock exchange at a price of 76.5-82.5 euros per share. The concern intends to sell almost 113.9 million preferred shares and raise EUR 8.7-9.4 billion as a result.

Porsche will be valued at 70-75 billion euros, and the placement will be the largest in Europe this year. Among the key investors in the offering, Volkswagen lists the sovereign wealth funds of Norway, Qatar and the United Arab Emirates, as well as the investment T Rowe Price Group. These investors, according to Bloomberg, plan to apply for the purchase of shares for a total of 3.7 billion euros.

Debut trading in Porsche papers is scheduled for September 29th. in preparation for the listing Volkswagen split the company's share capital into 50% common stock and 50% non-voting preferred stock . The automaker will list only 25% of the company's preferred shares on the stock exchange.

At the same time, the Porsche founding family, which owns a controlling stake in Volkswagen, will acquire 25% plus 1 Porsche share from ordinary (voting) shares through the investment fund Porsche Automobil Holding SE. This agreement was signed the day before.

Volkswagen, in case of a successful IPO, plans to distribute 49% of the proceeds to its shareholders in the form of special dividends. The payments are likely to take place in early 2023, the company said.