Volkswagen targets valuation of $70.1 billion to $75.1 billion in Porsche’s planned IPO

The name of the car manufacturer Porsche is associated with the curved facade of the newly built Porsche Center in Magdeburg.

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Volkswagen The automaker said Sunday it will price preferred shares in Porsche AG’s planned offering at €76.50 to €82.50 ($76.61 to $82.62) per share, generating revenue of €8.7 to €9.4 billion.

The price range, which translates to a valuation of €70-75 billion, would make it Germany’s second largest IPO in history, and at the higher end of the valuation, it would be Europe’s third-largest, according to Refinitiv data.

The automaker said trading will begin on September 29.

Up to 113,875,000 preferred shares of Volkswagen AG – which do not carry voting rights – will be placed with investors over the course of the IPO.

In line with an agreement struck earlier in September between Volkswagen AG and its largest shareholder, Porsche SE, 25% plus one common stock in the sportscar brand, which holds voting rights, will go to Porsche SE at the preferred stock price plus a 7.5% premium.

This brings total revenue to between 9.36 billion and 10.10 billion euros, the statement said.

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

As part of the listing, 911 million shares of Porsche stock will be divided into 455.5 million preferred shares and 455.5 million common shares. Only preferred shares will be listed.