Share in Dr. Ing. hc F. Porsche AG Preferred appeared on the Frankfurt Stock Exchange on Thursday, where owner Volkswagen (VWAGY) hopes to raise around €9.4 billion in one of the largest European initial public offerings on record.
Volkswagen has priced 12.5% of the preferred stock in the popular car brand at €82.50 per share, hitting the upper end of the previously estimated range and valuing the company at around €75 billion. These bets do not have any voting rights.
The listing will also see the Porsche-Beach families snap up 25% plus one share of common stock in the Stuttgart-based group at a premium of 7.5%. The move will allow the powerful clan to regain direct control of a former family business through its investment company, Porsche Automobile Holdings SE.
In a statement, Volkswagen Group Chief Financial Officer Arno Antlitz said the IPO gives greater autonomy to Porsche. He added that Volkswagen would also be able to use the money obtained by the flotation to advance its transition to electric vehicles and digitalisation.
“Today is a good day for Porsche and Volkswagen,” said Antlitz.
Volkswagen has also pledged to use half of the proceeds to offer a one-time special return, with the remainder earmarked for electrification goals.
Shares in Porsche rose slightly in early trading, while shares of Volkswagen and Porsche SE fell.
Volkswagen moved ahead with the Porsche float despite deep concerns about the current macroeconomic background. Supply chain constraints and recent high inflation have put severe pressure on the ability of automakers to produce and sell their vehicles.
However, Porsche’s supporters argued that it could withstand these headwinds thanks to recent resilient demand for luxury brands from wealthy car buyers. In 2021, peers such as Bentley and Rolls-Royce recorded record revenues.
By Scott Kanosky