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VW Group sets value target for Porsche up to $75 billion in IPO

The Volkswagen Group is taking the Porsche subsidiary to the public through an initial public offering and on Sunday confirmed the offering period will begin on September 20 and run until the project closing date. ants eight days later.

The VW Group will value the shares between 76.50 euros and 82.50 euros per share, at which point the upper price cap would value Porsche at 75 billion euros ($75 billion). The shares will be listed on the Frankfurt Stock Exchange.

The valuation, which is small compared to Tesla, is larger than the market capitalization of German carmakers such as BMW (€49 billion) and Mercedes-Benz (€61 billion), and roughly the same value as VW Group’s market is 88 billion euros.

“We believe that Porsche AG, with its strong business model and attractive financial performance, is ready to launch an IPO,” said Lutz Meschke, Porsche Vice President and CFO and CFO, in a statement. An announcement.

Prior to the IPO, Porsche was divided into 911 million shares, divided equally between preferred and common shares. Preference shares do not have voting rights but come with higher dividends. A maximum of 113,875,000 preferred shares will be offered to investors during the IPO.

Porsche SE, the majority-owned parent company of the Porsche and Piëch families and the largest shareholder in the VW Group, plans to buy back 25% plus one common share at a plus price of preferred stock. with a 7.5% premium, a move that would give the parent company a blocked minority, and as a result would influence any key decisions.

Sovereign wealth funds from Abu Dhabi, Norway and Qatar, as well as investment firm T. Rowe Price, will buy back preferred shares totaling up to €3.68 billion at a capped price. above, VW Group said.

If the IPO is successful, VW Group may follow suit with a recently established IPO PowerCo . battery company. Speaking at an investor pitch in July, Arno Antlitz, VW Group’s chief financial officer, said the battery company was set up to be able to list next year or in 2024. PowerCo is in charge. Responsible for VW Group’s global battery operations. The company has announced plans for six battery plants in Europe and is considering setting up plants in North America.

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