Volkswagen targets up to $75B valuation in upcoming Porsche IPO

Sep. 18, 2022 9:20 PM ETVolkswagen AG (VWAGY), POAHYPOAHF, VLKAF, VWAPYBy: Carl Surran, SA News Editor28 Comments

Porsche dealership

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Volkswagen (OTCPK:VWAGY) said on Sunday it is targeting a valuation of €70B-€75B in its initial public offering of automaker Porsche (OTCPK:POAHY), in what would be Europe's third largest IPO in history at the upper end of the range.

Volkswagen (OTCPK:VWAGY) said it will price preferred shares of Porsche (OTCPK:POAHY) at €76.50-€82.50/share, translating into a valuation of €70B-€75B, with proceeds from the sale totaling €18.1B-€19.5B

As part of the listing, 911M Porsche (OTCPK:POAHY) shares will be divided into 455.5M preferred shares and 455.5M ordinary shares; only the preferred shares will be listed.

Sovereign wealth funds of Qatar, Abu Dhabi and Norway as well as mutual fund company T. Rowe Price will subscribe to as many as €3.68B worth of preferred shares as cornerstone investors, Volkswagen (OTCPK:VWAGY) said.

Trading is scheduled to begin September 29 on the Frankfurt Stock Exchange.

Developments in China provide a buffer for Volkswagen (OTCPK:VWAGY) in a tough market, and India is a new market opportunity, Keith Williams writes in an analysis published on Seeking Alpha.

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