German carmaker Volkswagen AG aims to raise €9.4 billion ($9.41 billion) from its Porsche AG initial public offering (IPO).
The IPO is Europe’s largest listing in over a decade.
The sports carmaker is seeking a valuation of between 70 to 75 billion euros for the listing. Preferred shares in the flotation of Porsche AG will be priced at 76.50 euros to 82.50 euros per share.
Around 911 million Porsche AG shares will be divided, with 455.5 million each allotted for preferred shares and ordinary shares.
“Up to 113,875,000 preferred shares, carrying no voting rights, will be placed with investors over the course of the IPO,” Reuters reported.
In September, Volkswagen entered an agreement with Porsche SE where, “25 percent 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 percent premium,” according to Reuters.
Porsche SE, which is controlled by the Porsche and Piech families, will finance the acquisition of ordinary shares, with a debt capital of up to €7.9 billion.
Total proceeds from the sale will be 18.1 billion to 19.5 billion euros, Reuters said, adding “Volkswagen will call an extraordinary shareholder meeting in December where it will propose to pay 49 percent of total proceeds to shareholders in early 2023 as a special dividend,” if the IPO goes ahead.
Last week, the listing drew commitments from Qatar Investment Authority, Norway Wealth Fund among others, with the former making a preliminary commitment to buy a 4.99 percent stake in the IPO.
Institutional and private investors can subscribe to Porsche shared after a stock exchange prospectus is expected to be published on Monday.
The offer period will begin on September 20, whereas trading will begin on the Frankfurt Stock Exchange on September 29.
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