Porsche IPO could raise up to €75bn for parent Volkswagen

Flotation on Frankfurt stock market would be one of the largest European public offerings to date

The luxury carmaker Porsche could be valued at as much as €75bn when it floats on the Frankfurt stock exchange later this month, which would make it one of the largest European public offerings to date, according to the pricing of shares by its parent company, Volkswagen.

Volkswagen, which is planning to float 12.5% on 29 September, has priced the shares in Porsche at between €76.50 (£67.14) and €82.50.

The €70bn to €75bn valuation range, the midpoint of analysts’ expectations, will result in Volkswagen receiving €8.7bn to €9.4bn.

The company has said it intends to use 49% of the proceeds to pay a one-off special dividend to shareholders, with the remainder to help fund the costly shift towards electric vehicles and battery technology.

The listing will comprise 911m shares, a nod to the historic car brand’s most famous model, divided into 455.5m preferred shares and 455.5m ordinary shares. Up to 113.8m of the preferred shares, carrying no voting rights, will be placed with investors in what will be Germany’s second largest initial public offering to date.

If Porsche hits its upper-end valuation it will become Europe’s third largest stock market float on record, according to Refinitiv data.

The sovereign wealth funds of Qatar, Abu Dhabi and Norway as well as the mutual fund company T Rowe Price will subscribe up to €3.68bn 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,” the Volkswagen chief financial officer and chief operating officer, Arno Antlitz, said.

As part of the partial float, the Porsche-Piëch families, who are VW’s anchor shareholders, will buy a further 12.5% of Porsche, at a premium of 7.5% on the price of the shares offered to the general public.

The families’ shareholding, which will rise to 25% plus one ordinary share, will carry voting rights.

Porsche SE, the Porsche-Piëch investment vehicle, said it would finance the acquisition of its Porsche shares with debt capital of up to €7.9bn.

The proceeds of the sale of shares to the Porsche-Piëch families, who lost direct control of the company when VW bought Porsche in a reverse takeover in 2012, will bring in up to €10bn.

Total proceeds from the sale will be €18.1bn to €19.5bn.


Mark Sweney

The GuardianTramp

Related Content

Article image
Porsche shares rise on first trading day in €75bn stock market float
German carmaker Volkswagen lists 12.5% of Porsche shares to raise billions to invest in electric cars

Jasper Jolly

29, Sep, 2022 @11:28 AM

Article image
Volkswagen mulling Porsche IPO to help fund shift to electric – reports
Speculation about listing comes amid reports of Porsche and Piëch families considering their VW stake

Staff and agencies

07, Dec, 2021 @6:53 PM

Article image
Volkswagen and Porsche to merge

Announcement brings sports car firm's attempt to take over VW to an end

Kate Connolly in Berlin

06, May, 2009 @11:52 PM

Article image
Porsche gears up for IPO thrills but dealmakers are stuck in the slow lane
Volkswagen needs the cash and wants to catch up with Ferrari but there may be less to this deal than meets the eye

Jasper Jolly

24, Sep, 2022 @11:05 PM

Article image
Volkswagen to hit 1m electric cars milestone two years early
Carmaker says it expects to reach 1m by end of 2023 and 1.5m by end of 2025

Jasper Jolly

27, Dec, 2019 @5:00 PM

Article image
Volkswagen warns EU that US is beating it in race to attract battery makers
Carmaker says it is progressing faster on US factory than European one thanks to subsidies

Jasper Jolly

08, Mar, 2023 @12:35 PM

Article image
German court rules against Volkswagen in 'dieselgate' scandal
Carmaker must pay compensation to motorist who bought minivan fitted with emissions-cheating software

Jasper Jolly

25, May, 2020 @4:48 PM

Article image
Volkswagen in 'Dieselgate' settlement talks with 400,000 German owners
Carmaker has compensated VW owners in US and Australia over emissions-rigging scandal and faces class action in UK

Rob Davies

02, Jan, 2020 @6:24 PM

Article image
Volkswagen and Stellantis take financial hit amid chip shortage
Operating profits at VW fall by €500m, while Stellantis reports 14% decline in revenues

Jasper Jolly and agencies

28, Oct, 2021 @9:11 AM

Article image
Former head of Volkswagen could face 10 years in prison
Martin Winterkorn and other executives charged with fraud over emissions test cheating

Jasper Jolly

15, Apr, 2019 @5:49 PM