Sixty years after the launch of the iconic Porsche 911 sports car, Porsche will IPO on the stock market with 911 million Porsche AG shares, the Hungarian daily Magyar Hírlap reported.
The 911 million shares are divided into 455.5 million preferred shares and 455.5 million ordinary shares, according to the website of the share issuer. Only preferred shares will be listed on the stock exchange.
Details of the underwriting range, the valuation, and the accepted major investors are likely to be announced after the Volkswagen board meeting at the end of the week, Reuters news agency reported.
But Porsche SE, Volkswagen’s largest shareholder, has already committed to buying 25 percent of the common stock plus one share at a 7.5 percent premium over the preferred stock.
Presentations to potential investors will end on Friday, according to multiple sources, so senior executives can hold discussions at the end of the week before launching the underwriting process early next week.
According to sources, the stock exchange prospectus, the official announcement of the issue, will be published on Monday, after which institutional and private investors can start subscribing to Porsche shares. Volkswagen and Porsche declined to comment on the news agency report.
Porsche’s market capitalization is likely to be between €70 billion and €80 billion based on the issue price, according to one of the sources. In its latest weekly analysis, HSBC financial institution estimated Porsche’s market capitalization to be much lower, at €44.5-€56.9 billion.
The Volkswagen group’s brands include Audi, Bentley, Cupra, Lamborghini, Porsche, SEAT, Škoda, and Volkswagen cars, both light and heavy commercial vehicles, and Ducati motorcycles.