Volkswagen AG, in consultation with the advising banks, has set the placement price of the preferred shares in Porsche AG to be EUR 82.50 per preferred share. The much anticipated Porsche IPO listing has taken place on Thursday, September 29, 2022. In the IPO, 114 million Porsche AG shares were offered to the public at a price between 76.50 and 82.50 euros each. On September 29, 2022, trading in Porsche shares began on the Frankfurt Stock Exchange under the ticker symbol P911, making it one of Europe’s most significant listings in recent years. The Frankfurt Stock Exchange opens at 9 am and the closing time is 5 pm.
Porsche (P911) stock price was quoted around EUR 82.70 in the initial trading hours.
In total, 25 % of the preferred shares in Porsche AG from the portfolio of Volkswagen AG will be placed with investors. This is equal to a total volume of 113,875,000 preferred shares. If the Greenshoe Option is exercised in full by placing the preferred shares, Volkswagen AG will generate gross proceeds in the amount of approximately EUR 9.4 bn.
Volkswagen AG, its parent company is selling shares to investors through an initial public offering (IPO). Porsche is being separated from Volkswagen, which is largely owned by Porsche Automobil Holding, the investment vehicle of the founding Porsche and Piesch family.
Porsche, a luxury sports car maker, is valued at up to 75 billion euros by the parent company Volkswagen, which hopes to raise up to 9.4 billion euros ($9.2 billion). The IPO market is pinning hope on this mega public offering of 2022.
Volkswagen AG is anticipated to conduct a special general meeting in December 2022 and recommend to its shareholders a special dividend of 49% of the total gross proceeds from placing the preferred shares and selling the common shares to be distributed to shareholders at the start of 2023.
Among the investors who have committed to the Porsche IPO are T. Rowe Price Group Inc., the investment authority of Qatar, and the national wealth fund of Norway.
Although Porsche is better recognized as a sports car manufacturer, over half of the vehicle sales in the last three years have been in the sport-utility vehicle segment. It intends to offer a battery-electric version of the Macan in 2024 in order to meet its goals of electrifying 50% of new vehicle deliveries by 2025 and 80% by 2030.
Porsche made €4 billion on €33.14 billion in sales last year. Its return on sales, operating profit before interest, taxes, depreciation, and amortization (Ebitda) margin, and diesel penalty for 2019 were all 16% last year.