Porsche to Go Public: Luxury Car Maker Set for Valuation Up to $75 Billion in Stock Offering

Volkswagen (VW) has revealed that it is targeting a valuation of up to €75bn ($75bn; £65.8bn) for Porsche when the renowned luxury brand is officially listed on the stock market. Trading for the shares is scheduled to begin in Frankfurt on September 29, marking the beginning of one of the most anticipated initial public offerings (IPOs) in Europe.

The prospectus for the share sale is expected to be released on Monday, followed by the opening of the subscription period for investors interested in purchasing Porsche shares. This IPO is poised to be the second-largest ever in Germany’s history, only surpassed by the flotation of telecommunications giant Deutsche Telekom in 1996.

VW’s Chief Financial Officer, Arno Antlitz, expressed confidence in the IPO’s success, stating, “We are now in the final stages of our IPO plans for Porsche and welcome the strong commitment from our cornerstone investors.”

Under the proposed plan, the price for preferred shares will range from €76.50 to €82.50 per share. At the upper end of this price range, Porsche’s market value would soar to €75bn, making it the third-largest IPO in Europe. However, this valuation is lower than the original target of €85bn, which VW had set earlier. Investor concerns over rising interest rates and the possibility of a global recession are thought to have influenced this downward revision.

Through this IPO, Volkswagen aims to raise as much as €9.4bn, funds that will be allocated toward its ambitious transition to electric vehicles and substantial investments in software development. If the offering proceeds as planned, VW has stated that it intends to distribute a special dividend to shareholders, with 49% of the gross proceeds from the sale being returned.

Despite broader economic uncertainties, including high inflation, an energy crisis, and rising interest rates in Europe, Porsche’s IPO is a significant move for the automaker. The Porsche-Piech family, which ceded control of the company to Volkswagen over a decade ago, will also purchase shares at a premium, regaining considerable influence in the decision-making process at Porsche.

Porsche Set for Multi-Billion Euro IPO, Aiming for $75bn Valuation

Porsche is gearing up for its highly anticipated IPO, with Volkswagen targeting a valuation of up to $75bn for the luxury automaker. The stock market debut is expected to make waves, raising funds for Volkswagen’s shift to electric mobility.