Volkswagen (VWAGY) is targeting a valuation of $75 billion U.S. for its sportscar unit Porsche,
which it is spinning off in a highly anticipated initial public offering (IPO).
A valuation of $75 billion makes Porsche the second-largest IPO in Germany’s history.
Volkswagen said it plans to price preferred shares of Porsche at 76.50 euros to 82.50 euros
each, which would translate into a valuation of $75 billion U.S.
Trading in shares of Porsche are expected to begin on the Frankfurt Stock Exchange
September 29, according to a statement by Volkswagen.
A total of 911 million Porsche shares will be issued in a nod to the company’s popular 911
sportscar model, and the shares will be evenly split between 455.5 million preferred and 455.5
million ordinary shares.
The sovereign wealth funds of Qatar, Abu Dhabi, and Norway, as well as mutual fund company
T. Rowe Price, have each filed to purchase billions of dollars worth of shares, paying at the
upper end of the pricing range, said Volkswagen.
If the IPO closes as planned later this month, Volkswagen said it plans to hold a shareholder
meeting in December where it will propose to pay 49% of the proceeds from the offering to
shareholders as a special dividend.
Volkswagen’s stock is down 20% this year and trading at the equivalent of $144 U.S. per share.
