Porsche Is Set For IPO To Create More Electric Vehicles; Enterprise Value Could Be As High As €85 Billion
The ‘horse’ might finally be off to race in the stock exchange.
The Volkswagen Group (FSE: VOW) announced on Monday that it plans to push through taking its luxury brand Porsche public in an initial offering that could value the carmaker as high as €85 billion. The IPO is planned for in late September or in early October, “subject to further capital market developments.”
It is expected that up to 12.5% of the luxury automaker will be offered in the form of preference shares. With the valuation expected at €60 billion – €85 billion and Volkswagen potentially raising more than €10.5 billion from the offering, the IPO is potentially deemed to be Germany’s largest in history and Europe’s biggest since 1999.
Some proceeds from the offering are slated to be used in building more electric vehicles, according to the company. Volkswagen will also propose giving its shareholders a special dividend from 49% of the proceeds in the event “of a successful IPO.”
Qatar Investment Authority has initially committed to take a 4.99% stake in the newly publicly listed firm through the offering.
Information for this briefing was found via Reuters and CNN. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.