Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Factbox-The structure of the planned Porsche IPO

Published 19/09/2022, 16:41
Updated 19/09/2022, 16:50
© Reuters. FILE PHOTO: The Porsche logo is seen on a wheel of the 2020 Porsche 911 Speedster as it is revealed at the 2019 New York International Auto Show in New York City, New York, U.S, April 17, 2019. REUTERS/Brendan McDermid

© Reuters. FILE PHOTO: The Porsche logo is seen on a wheel of the 2020 Porsche 911 Speedster as it is revealed at the 2019 New York International Auto Show in New York City, New York, U.S, April 17, 2019. REUTERS/Brendan McDermid

FRANKFURT (Reuters) - Volkswagen (ETR:VOWG_p) late on Sunday unveiled the pricing for the planned initial public offering of Porsche AG, giving the luxury sportscar division a valuation of up to 75 billion euros ($74.97 billion).

Here are key facts about the structure of the planned landmark listing:

SHARE CAPITAL

- Porsche's share capital is being split in two, with 455.5 million ordinary shares and the same number of preferred shares, totalling 911 million shares overall, a play on the company's most iconic model.

- Ordinary shares carry voting rights, which matter when it comes to the question of who controls the company.

- Preferred shares don't carry voting rights, but their holders will receive an additional dividend of 0.01 euros apiece on top of every dividend the company pays out on its ordinary shares.

- Shares in Porsche AG are expected to start trading on Frankfurt's stock exchange on Sept. 29.

WHAT'S BEING SOLD BY VOLKSWAGEN?

- As part of the deal, Volkswagen plans to sell 25% plus one ordinary share in Porsche AG to Porsche SE, the holding firm controlled by the Piech and Porsche families, effectively giving them a blocking minority in the namesake brand.

- Volkswagen also plans to sell 25% of preferred shares on the market. Qatar, Volkswagen's third-largest shareholder, has already committed to buy 4.99%, leaving another 20.01%, or 10% of Porsche's total capital, to other investors.

- The sovereign wealth funds of Norway and Abu Dhabi and mutual fund company T. Rowe Price have also committed to buying 1.8 billion euros worth of preferred shares between them.

- Porsche SE, already Volkswagen's largest shareholder and holder of the majority of voting rights in Europe's top carmaker, has pledged to pay a 7.5% premium for its ordinary shares over the placement price of the preferred shares.

HOW MUCH MONEY WILL VOLKSWAGEN GET?

- Volkswagen's proceeds from the sale of ordinary and preferred shares will be between 18.1 billion and 19.5 billion euros.

- In case of a successful IPO, Volkswagen will call an extraordinary shareholder meeting in December where it will propose to pay 49% of total proceeds, or 8.9 billion-9.6 billion euros, to its shareholders in early 2023 as a special dividend.

WHO WILL CONTROL PORSCHE AG?

- Volkswagen AG and Porsche SE will jointly own all of Porsche AG's ordinary shares in a 75% minus one share-25% plus one share split.

- Overall, 75% minus one ordinary share of Porsche AG's total share capital will be owned by Volkswagen AG after the IPO.

- Porsche SE will own 12.5% plus one ordinary share of Porsche AG's total capital while Qatar will own 2.5%.

© Reuters. FILE PHOTO: The Porsche logo is seen on a wheel of the 2020 Porsche 911 Speedster as it is revealed at the 2019 New York International Auto Show in New York City, New York, U.S, April 17, 2019. REUTERS/Brendan McDermid

- The remaining 10% will be free-float.

($1 = 1.0004 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.