by Jan Schwartz
HAMBURG (Reuters) – Volkswagen will price the preferred shares offered in Porsche AG’s IPO at between 76.50 and 82.50 euros per share, the automaker said on Sunday, with the deal expected to generate a product of 8.7 to 9.4 billion euros.
This price range, which corresponds to a valuation of 70 to 75 billion euros, would make it the second largest IPO in German history and, at the high end of the range, the third largest ever. Registered in Europe, according to Refinitiv data.
Negotiations will begin Sept. 29, the automaker said.
In total, up to 113,875,000 preference shares of Volkswagen AG – which do not carry voting rights – will be placed with investors during the IPO.
Under an agreement reached in early September between Volkswagen AG and its largest shareholder Porsche SE, 25% plus one share of the sports car brand’s ordinary securities, which carry voting rights, will go to Porsche SE at preferred stock price plus a premium of 7.5%.
This brings the total proceeds of the operation between 18.1 billion and 19.5 billion euros, according to the press release.
A stock prospectus is expected to be published on Monday, after which institutional and private investors will be able to subscribe to Porsche shares.
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. Only preferred shares will be listed.
In the event of a successful IPO, Volkswagen will call an extraordinary shareholders’ meeting in December where it will propose to pay out 49% of the total proceeds to shareholders, in early 2023, as a special dividend.
(With Alexander Huebner and Victoria Waldersee, French version Benjamin Mallet)
Copyright © 2022 Thomson Reuters
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