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Porsche Is Expected to Reach Up to $75 Billion in Its Initial Public Offering (IPO)

Everything is ready for Porsche to hit the stock market as a public company on September 29. According to Reuters, Volkswagen decided to list Porsche AG’s preferred shares at €76.50 to €82.50 per share. That will represent a market cap of €70 billion to €75 billion, which the current exchange rate makes it be a bit more than $75 billion.
Porsche may reach a market cap of up to $75 billion 7 photos
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If everything goes according to plan, Porsche will have 911 million shares divided into 455.5 million preferred shares and 455.5 million ordinary shares. Porsche SE will buy 25% plus one of the ordinary shares, or 113.875 million shares. The holding is controlled by the Porsche and Piëch family, who want to remain in control of the carmaker.

The initial public offering (IPO) will sell 113.875 million preferred shares with no voting rights to regular investors. At €76.50 ($76.72) a pop, that’s €8.7 billion ($8.73). Porsche SE will pay a premium of 7.5% over that price per share, reaching the €82.50 ($82.74) we mentioned before. That’s €9.4 billion ($9.43) more. On top of that, the sovereign wealth funds of Qatar, Abu Dhabi, and Norway and the mutual fund company T. Rowe Price will buy €3.68 billion ($3.69) in the available preferred shares as cornerstone investors.

Volkswagen estimates the proceedings will reach more than €18 billion ($18.05). According to Reuters, the carmaker will then propose in an extraordinary shareholder meeting to pay 49% of this amount as a special dividend to them in 2023. That should make the investment even more attractive, even if those buying shares will probably have an eye on the capital gains a price increase on these shares will represent. Porsche’s shares will be negotiated at the Frankfurt Stock Exchange.

Porsche is speeding up its electric shift with the Taycan and soon with the Macan EV. Investors would probably avoid the company or focus only on short-term gains if it were to present itself solely as a manufacturer of sports cars with engines.
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About the author: Gustavo Henrique Ruffo
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Motoring writer since 1998, Gustavo wants to write relevant stories about cars and their shift to a sustainable future.
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