Connect with us

Hi, what are you looking for?


Porsche kicks off Europe's biggest float in a decade

Listing: Porsche expects to attract a market valuation of £61-66bn, with trading to start in Frankfurt at the end of the month.

Porsche starts Europe’s biggest fleet in a decade: but cost crisis threatens to slam the carmaker’s £65bn hopes to a halt

Volkswagen goes ahead with Porsche’s huge stock listing, despite investor jitters caused by economic turmoil in Europe.

The carmaker expects Porsche to attract a market valuation of £61-66bn, with trading to start in Frankfurt at the end of the month.

It will be Europe’s largest listing in more than a decade and the second largest in German history, as Porsche aims to raise £8.3bn in the initial public offering (IPO).

The big float comes at a time of turmoil with red-hot inflation, rising interest rates and an energy crisis.

The uncertainty has made investors wary of throwing their money at companies that come to market.

But Porsche’s float could boost Europe’s stock market after a quiet year. Arno Antlitz, Chief Financial Officer of Volkswagen, said: “We are now in the home stretch with Porsche and we appreciate the commitment of our key investors.”

Qatari, Abu Dhabi and Norwegian sovereign wealth funds, and investment house T Rowe Price, have pledged to buy a total of up to £3.2bn worth of Porsche shares.

Volkswagen plans to offer investors 25 percent of Porsche’s so-called “preferred” shares, which do not carry voting rights. This will raise up to £8.3bn, with a share price of between €76.50 (£67.07) and €82.50.

Related:  5 Things To Do Instantly About Outsourcing Company

The similarly named Porsche SE, the largest shareholder in Volkswagen, which is controlled by the billionaire Porsche-Piech family, will buy 25 percent plus one of the “common” shares, which have voting rights.

It has agreed to pay the initial public offering price plus a 7.5 per cent premium, which will generate up to a further £8.9bn for Volkswagen. The deal will return control to the Porsche-Piech family of industrialists after more than a decade.

His influence has sparked governance concerns, as has the fact that Volkswagen boss Oliver Blume will stay on as Porsche chief executive.

In total, Volkswagen is set to pocket up to £17.2bn from the initial public offering and plans to dole out 49 per cent of this to its shareholders via a special dividend.

Related:  Are Liverpool stars Van Dijk, Henderson and Salah as effective as they once were?

The company will spend the rest on boosting its production of electric cars and investing in software, he added.

Using money raised from investors in dollars, Porsche’s $9.4bn listing would be the largest since Glencore raised $10bn in 2011, nearly double the amount the companies have raised in IPOs this year.

With a market capitalization of £66bn, Porsche would be worth almost as much as its parent company Volkswagen.

You may also like

Click to comment

Leave a Reply

Your email address will not be published.


You May Also Like


The royal beekeeper, in an arcane tradition believed to date back centuries, has informed the hives kept on the grounds of Buckingham Palace and...


Paul Collingwood insists England are ‘not going to change’ their aggressive approach after a disappointing first day against South Africa and backs bowlers to...


Apple is targeting September 7 for the launch of the iPhone 14, three Apple Watch models and new iPads, but the company may raise...


Ministers praised The Mail on Sunday’s Save Our Parks campaign as they provide a much-needed boost of £9 million for 100 new and improved...