Volkswagen targets 70-75 bln euro valuation in planned Porsche IPO

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HAMBURG — Volkswagen will price preferred shares in the planned flotation of Porsche AG at 76.50 euros to 82.50 euros ($76.61 to $82.62) per share, the carmaker said on Sunday, for proceeds of 8.7 billion to 9.4 billion euros.

The price range, which translates into a valuation of 70-75 billion euros, would make it Germany’s second biggest initial public offering ever and, at the upper end of the valuation, Europe’s third largest on record, according to Refinitiv data.

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Trading will begin on the Frankfurt Stock Exchange on Sept. 29, the carmaker said.

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Up to 113,875,000 preferred shares from Volkswagen AG, with no voting rights, will be placed with investors over the course of the IPO.

Cornerstone investors Qatar Investment Authority, Norges Bank Investment Management, T. Rowe Price and ADQ will subscribe for up to 3.68 billion euros in preferred shares at a final offering price at the upper end of the range, Volkswagen said.

In line with Volkswagen’s agreement earlier in September with its largest shareholder Porsche SE, 25% plus one ordinary share in the sportscar brand, which do carry voting rights, will go to Porsche SE at the price of the preferred shares plus a 7.5% premium.

That brings total proceeds to between 18.1 billion and 19.5 billion euros.

A stock exchange prospectus is expected to be published on Monday, after which institutional and private investors can subscribe to Porsche shares.

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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 the preferred shares will be listed.

In the event of a successful IPO, Volkswagen will call an extraordinary shareholder meeting in December where it will propose to pay 49% of total proceeds to shareholders in early 2023 as a special dividend.

($1 = 0.9985 euros)

(Reporting by Jan Schwartz; Additional reporting by Alexander Huebner and Victoria Waldersee; Writing by Christoph Steitz; Editing by Sabine Wollrab, Frances Kerry, Frank Jack Daniel and Richard Chang)