Luxury carmaker Porsche could see its valuation reach €75 billion when it floats on the Frankfurt stock exchange later in September according to the pricing of shares by parent company Volkswagen.

On Sunday, Volkswagen AG’s Executive Board, with the approval of the Supervisory Board, set a placement price range for the preferred shares in Porsche AG from €76.50 to €82.50 per preferred share.

The total listing is made up of 911 million shares, as a sign of respect towards Porsche’s most famous model. The shares are divided into 455.5 million preferred and 455.5 ordinary.

In total, up to 113,875,000 preferred shares from the holdings of Volkswagen AG are planned to be placed with investors in the course of the IPO and carry with them no voting rights.

This includes a basic offering of 99,021,740 preferred shares as well as of 14,853,260 further preferred shares to cover over-allotments. The preferred shares in Porsche are planned to begin trading on 29th September 2022, representing 12.5 per cent of available shares.

The €70-75 billion valuation range, representing a midpoint of analysts’ expectations, will take place should Volkswagen receive €8.7 billion to €9.4 billion from floating the preferred shares.

Volkswagen has said it intends to use just under half of the proceeds, 49 per cent, to pay a one-off special dividend to shareholders. It will use the remaining proceeds to help fund the highly costly shift towards electric vehicles and the required battery technology.

Should Porsche manage to reach its upper-end valuation, it will become Europe’s third largest stock market float on record, according to Refinitiv data.

Maltese stock exchange cuts transaction fees

July 10, 2024
by Robert Fenech

Equities can now be traded for free on the Malta Stock Exchange

Hal Mann Vella Group issues €23 million secured bonds

July 9, 2024
by BN Writer

The offer is mainly targeted to holders of the existing 5% €30 million secured bonds maturing on 6th November 2024

Malta public debt edges closer to €10 billion

July 5, 2024
by BN Writer

The Government registered a €59 million deficit in the first quarter of 2024