Luxury carmaker Porsche could see its valuation reach €75 billion when it floats on the Frankfurt stock exchange later in September according to the pricing of shares by parent company Volkswagen.

On Sunday, Volkswagen AG’s Executive Board, with the approval of the Supervisory Board, set a placement price range for the preferred shares in Porsche AG from €76.50 to €82.50 per preferred share.

The total listing is made up of 911 million shares, as a sign of respect towards Porsche’s most famous model. The shares are divided into 455.5 million preferred and 455.5 ordinary.

In total, up to 113,875,000 preferred shares from the holdings of Volkswagen AG are planned to be placed with investors in the course of the IPO and carry with them no voting rights.

This includes a basic offering of 99,021,740 preferred shares as well as of 14,853,260 further preferred shares to cover over-allotments. The preferred shares in Porsche are planned to begin trading on 29th September 2022, representing 12.5 per cent of available shares.

The €70-75 billion valuation range, representing a midpoint of analysts’ expectations, will take place should Volkswagen receive €8.7 billion to €9.4 billion from floating the preferred shares.

Volkswagen has said it intends to use just under half of the proceeds, 49 per cent, to pay a one-off special dividend to shareholders. It will use the remaining proceeds to help fund the highly costly shift towards electric vehicles and the required battery technology.

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

Related

Greek sovereign fund joins Malta-based investment network

October 4, 2022
by Robert Fenech

Since being set up earlier this year, the sovereign wealth fund foundation has already added two members

The European Central Bank raised interest rates again. How will Maltese borrowers be impacted?

October 4, 2022
by Robert Fenech

The way local banks work is cushioning the impact of higher interest rates... for now

Public debt shoots up by just under €900 million as Government responds to pandemic, war, inflation

September 30, 2022
by Robert Fenech

The deficit stood at €359 million by the end of August, less than half that recorded a year ago