Volkswagen targets 70-75 billion euro valuation in planned Porsche IPO By Reuters

© Reuters. FILE Image: An employee of German motor vehicle company Porsche fixes a Porsche 911 Carrera 4S label at the Porsche factory in Stuttgart-Zuffenhausen, Germany, February 19, 2019. REUTERS/Ralph Orlowski/File Image

By Jan Schwartz

HAMBURG (Reuters) -Volkswagen will price most popular shares in the prepared flotation of Porsche AG at 76.50 euros to 82.50 euros ($76.61 to $82.62) per share, the carmaker mentioned on Sunday, for proceeds of 8.7 billion to 9.4 billion euros.

The price vary, which translates into a valuation of 70-75 billion euros, would make it Germany’s second largest initial general public offering ever and, at the higher end of the valuation, Europe’s 3rd greatest on document, in accordance to Refinitiv info.

Investing will get started on the Frankfurt Stock Exchange on Sept. 29, the carmaker said.

Up to 113,875,000 desired shares from Volkswagen AG (OTC:), with no voting rights, will be positioned with investors over the system of the IPO.

Cornerstone investors Qatar Investment Authority, Norges Lender Financial commitment Administration, T. Rowe Rate and ADQ will subscribe for up to 3.68 billion euros in preferred shares at a ultimate supplying price at the higher finish of the range, Volkswagen (ETR:) mentioned.

In line with Volkswagen’s agreement before in September with its largest shareholder Porsche SE, 25% moreover a person regular share in the sportscar model, which do have voting legal rights, will go to Porsche SE at the price tag of the preferred shares in addition a 7.5% high quality.

That brings complete proceeds to involving 18.1 billion and 19.5 billion euros.

A stock exchange prospectus is expected to be published on Monday, soon after which institutional and private traders can subscribe to Porsche shares.

As portion of the listing, 911 million Porsche AG shares will be divided into 455.5 million preferred shares and 455.5 million ordinary shares. Only the most well-liked shares will be mentioned.

In the function of a prosperous IPO, Volkswagen will connect with an extraordinary shareholder meeting in December exactly where it will propose to pay out 49% of overall proceeds to shareholders in early 2023 as a special dividend.

($1 = .9985 euros)