Porsche will go public this week and shares will be available for €82.50 ($79.89) each, priced at the higher end of the company’s target price range.
At the initial public offering (IPO), the Volkswagen Group will sell 12.5 percent of the company’s non-voting shares, which will bring in about €9.4 billion ($9.1 billion) and value the automaker at €75. 2 billion ($72.8 billion). This will make it Germany’s second largest IPO ever.
As many as 911 million shares in Porsche will be sold and approximately half of the proceeds from the Frankfurt stock exchange listing will be distributed to shareholders. The rest of the money will be used to fund VW’s transition to all-electric vehicles.
“In the event of a successful IPO, Volkswagen AG will convene an extraordinary general meeting in December 2022, at which time it will propose to its shareholders to pay out a special dividend of 49% of the total gross proceeds from the placement of the placement in early 2023. preference shares and the sale of the common shares,” the Volkswagen Group said in a statement.
The IPO continues despite the current volatile stock market condition and widespread economic concerns.
“This one [IPO] is a key element for the group, especially as the potential yield would give us more flexibility to further accelerate the transformation,” Porsche CFO Arno Antlitz added in a statement earlier this month.
Speaking to the media last week, VW works council chief Daniela Cavallo noted that the automaker could sell more Porsche shares in the future to raise additional funds.