Volkswagen confirmed that it will fix the price of Porsche shares between 76 and 83 dollars eachwith which it would obtain income of about 9,000 million dollars once it was traded on the stock market.
In this way, the valuation of the German sports brand will be between 70 thousand and 78 thousand million dollars, a range that would convert to Porsche’s IPO the second largest in German history.
If it reaches a valuation of more than 75 billion, it would be the third largest IPO on record on any stock exchange in Europe.
The listing of Porsche shares will begin on next september 29 and generates high expectations, not only in the automobile industry, but in the markets in general, since in the midst of the crisis, many warned Volkswagen to wait for the IPO for later.
In total, 113,875,000 preferred shares of Volkswagen AG will be placed, without voting rights, according to what was reported by the German holding company that owns the Porsche brand, among many others.
Porsche goes public and these are VW’s expectations
In line with the agreements reached at the beginning of September between Volkswagen and its largest shareholder, Porsche SE, 25 percent of the ordinary shares of the sports car brand, which will have voting rights, will go to Porsche SE at the value of the preferred shares, plus a premium of 7.5 percent.
Thus, the global value of the operation will amount to just over 10 billion dollars, as reported by VW.
As part of the listing, 911 million shares of Porsche AG will be split into 455 million preferred shares and 456 million common shares.
The number 911 refers to the emblematic model of the brand, a true action of marketing in the financial market.
The Porsche IPO, plus private trading of shares, is speculated to raise some $19.5 billion.
Porsche’s IPO doesn’t stop
VW’s decision is risky, as investors around the world have been warning that this is not the time for a stock market debut.
They worry that stocks are in a downward spiral, inflation is breaking all-time highs and Russian gas is putting Europe in check.
Nevertheless, Oliver BrumeCEO of Porsche, said earlier this month that the sports car’s share price will be “an icebreaker,” referring to the power they will have to navigate through problems.
He also said that the arrival of Porsche on the stock market will be “positive for the capital markets” that these days “have very few potential investments.”
Volkswagen is seeking the necessary funds to finance its electrical transformation, which, according to estimates by the same company, could require costs of 52 billion dollars until 2030.
Now read:
The crisis does not stop Volkswagen: it is days away from taking Porsche to the stock market
Latin American unicorns: from Kavak to Nubank, the world talks about them
Alibaba leans on Hong Kong and advances its global expansion plan