German auto maker Volkswagen AG is targeting a valuation of up to $71.5 billion (75 billion euros) for its initial public offering of Porsche, in what would be one of Europe’s largest-ever IPOs.
In a nod to its iconic sports car, 911 million Porsche shares will be divided into 455.5 million preferred shares and 455.5 million ordinary shares. But only up to 113,875,000 preferred, non-voting shares will be sold, raising about $9.1 billion (9.4 billion euros) at the top of its range.
A holding company controlled by the Porsche-Piech family will buy 25%-plus-one of Porsche’s common shares, with voting rights, at a 7.5% premium.
While the European IPO market has been depressed this year, due largely to soaring inflation, energy costs and interest rates, there is reportedly much interest in Porsche, with billions already pledged from the sovereign wealth funds of Qatar, Abu Dhabi and Norway, as well as mutual-fund company T. Rowe Price, according to VW.
Trading is set to begin Sept. 19 on the Frankfurt Stock Exchange.
About half of the IPO’s proceeds will go to VW’s shareholders in a special dividend.