Porsche is listed on the Frankfurt Stock Exchange, with a valuation of around 78 billion euros (117.84 billion AUD), leading the company to describe it as the largest initial public offering (IPO) by market capitalization in Europe.
This entitlement is based on the notional value of the offer price for the preferred shares and the corresponding value for the common shares.
The preferred shares are priced at EUR 82.50 (AUD 124.64) and are listed on the Frankfurt Stock Exchange under the symbol P911.
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As part of the IPO, the Volkswagen Group is placing 113,875,000 of its non-voting bearer preference shares, of which 14,853,260 are preference shares to cover over-allotments.
This corresponds to 25 percent of their preference shares and 12.5 percent of the issued and outstanding share capital of Porsche AG.
7.7 percent of the preferred shares will go to private investors, although according to Porsche the offer was oversubscribed and not all purchase orders from private investors could be fully considered.
Porsche says the IPO gives the company “greater entrepreneurial freedom”.
The existing domination and profit and loss transfer agreements with Volkswagen will expire at the end of 2022 and will be replaced by an industry cooperation agreement “at arm’s length” that will regulate the future relationship.
The IPO of Porsche will also give Volkswagen AG potential gross proceeds of between €9.4 billion and €10.1 billion (AUD$14.19 billion to A$15.25 billion).
Volkswagen AG will convene an Extraordinary General Meeting in December 2022 to propose to its shareholders the distribution of a special dividend of 49 percent of total gross proceeds in 2023.
“Today a big dream is coming true for Porsche. With our increased degree of independence, we are very well positioned to implement our ambitious goals in the coming years,” said Porsche CEO Oliver Blume.
“We want to redefine the concept of modern luxury by combining luxury with sustainability and social commitment. Porsche wants to grow with its luxury products and services and assume social responsibility.”
Porsche wants 80 percent of all its vehicles to be electric by 2030 and is working towards a net carbon neutral value chain in 2030 and a net carbon neutral use phase for its future electric vehicles.
“We want to inspire customers and fans all over the world – with successful products and convincing financial performance. We want to share this passion with investors and look forward to welcoming those who have become part of our unique Porsche family in this way,” says Lutz Meschke, Deputy Chairman of the Executive Board of Porsche AG and Chief Financial Officer.
“Together we are working resolutely to implement our long-term strategy. Here we can use the best of both worlds: the advantages of our luxury positioning and the synergies with the Volkswagen Group.”
Porsche sees itself in a robust financial position and expects an operating return on sales of between 17 and 18 percent for this calendar year and is targeting similar returns of 17 to 19 percent in the medium term in order to reach 20 percent.
In the coming years, it wants to improve its EBITDA margin (earnings before interest, taxes, depreciation and amortization) to 25 to 27 percent.
Among its investors, the Qatar Investment Authority previously committed to buying 4.99 percent of preferred stock as a cornerstone investor, along with other such investors including Norges Bank Investment Management, T. Rowe Price and ADQ.
The Porsche-Piech family will acquire – through Porsche Automobil Holding SE – 25 percent plus one of Porsche’s voting common stock, giving the Porsche-Piech clan a blocking minority interest in their namesake brand.
https://7news.com.au/lifestyle/motoring/porsche-goes-public-lists-on-frankfurt-stock-exchange-c-8402486 Porsche goes public, listed on the Frankfurt Stock Exchange