Volkswagen sets Porsche IPO at €9.4 billion

FRANKFURT, Germany (AP) — Volkswagen has set a price range to sell a minority stake in the Porsche brand for several billion euros as it prepares for an initial public offering to finance VW’s investments in new technologies and businesses, including electric cars, software and services. .

The German carmaker said it is aiming for a listing on the Frankfurt stock exchange on September 29 after placing up to 25% of non-voting preferred shares in Porsche AG, maker of the 911 sports car and Cayenne SUV, to investors.

The Qatar Investment Authority has committed to buy 4.99%, with smaller stakes going to Norges Bank Investment, T. Rowe Price and ADQ.

The price range for the preferred share was set at a range of EUR 76.50 (USD) to EUR 82.50, which translates to EUR 8.71 billion to EUR 9.39 billion. Porsche’s share capital was divided into 50% preferred and 50% common stock, so that the IPO stake is 12.5% ​​of the company.

The deal also includes the sale of 25% plus one share of common stock at a 7.5% premium to Porsche Automobil Holding SE, Volkswagen’s controlling shareholder, representing the Porsche and Piech families.

According to the maximum price, the total amount received from the sale of preferred and ordinary shares will be 19.5 billion euros, of which 49% will be paid as dividends to shareholders and the rest will be available for investment purposes of the company.

Volkswagen has launched a major push into electric cars and says future profits will increasingly come from investments in electric vehicles, software and services as traditional internal combustion cars take up less market share.

The automaker says the deal will give Porsche more “entrepreneurial autonomy,” but it will continue to fully include Porsche in its financial reporting. VW added that the existing industrial cooperation between Volkswagen and Porsche will be “fully continued”.

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