Volkswagen To Raise Up To EUR 9.4 Bln In Porsche IPO

Volkswagen said Sunday that it has set price range for initial public offering of preferred shares in sports car brand Porsche AG at 76.50 euros – 82.50 euros per share. In total, up to 113.88 million preferred shares from the holdings of Volkswagen are planned to be placed with investors in the course of the IPO.The anticipated gross proceeds from the IPO is between 8.71 billion euros and 9.39 billion euros.

Volkswagen said earlier this month that it would pursue an initial public offering of the preferred shares of Porsche and list them in Frankfurt at the end of September or beginning of October 2022.

Volkswagen stated on Sunday that up to 113.88 million preferred shares from the holdings of Volkswagen are planned to be placed with investors in the course of the IPO. This includes a basic offering of 99.02 million preferred shares as well as of 14.85 million further preferred shares to cover over-allotments. The preferred shares in Porsche AG are planned to begin trading on 29 September 2022.

Volkswagen said earlier this month that, in preparation for the IPO, the share capital of Porsche AG has been divided into 50% preference shares and 50% ordinary shares. As part of the IPO, a total of up to 25% of the preferred shares in Porsche AG would be placed with investors from the holding of Volkswagen AG.

In connection with the IPO, Porsche Automobil Holding SE would acquire 25% plus one share in the ordinary share capital of Porsche AG from Volkswagen AG at the placement price of the preference shares plus a premium of 7.5%. Volkswagen said Sunday that, depending on the final offering price, the gross proceeds from the deal varies from 9.36 billion euros to 10.10 billion euros. Volkswagen and Porsche Automobil Holding SE entered into such Share Purchase Agreement Sunday.

Volkswagen noted that it will convene an extraordinary general meeting in December 2022, at which it will propose to its shareholders to distribute in the beginning of 2023 a special dividend of 49% of the total gross proceeds from the placement of the preferred shares and the sale of the ordinary shares. The amount is divided equally among the 501.30 million outstanding ordinary and preferred shares of Volkswagen.

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