Porsche plans to list shares on stock exchange, valuing company at around $10 billion.
Volkswagen to announce pricing range for IPO Sunday.
Volkswagen is planning to list its luxury sportscar division, Porsche AG, on the stock market in late September or early October. The company is expected to sell 455.5 million ordinary shares and the same number of preferred shares, totalling 911 million shares overall. Ordinary shares carry voting rights, which matter when it comes to the question of who controls the company. Preferred shares don't carry voting rights, but their holders will receive an additional dividend of 0.01 euros apiece on top of every dividend the company pays out on its ordinary shares. The stock market listing, expected in late September or early October, will only apply to the preferred shares. Volkswagen is also planning to sell 25% of preferred shares on the market; Qatar, Volkswagen's third-largest shareholder, has already committed to buy 4.99%, leaving another 20.01%, or 10% of Porsche's total capital, to other investors. Porsche SE, already Volkswagen's largest shareholder and holder of the majority of voting rights in Europe's top carmaker, has pledged to pay a 7.5% premium for its ordinary shares over the placement price of the preferred shares. Assuming a valuation range of 70 billion to 80 billion euros ($70-$80 billion), proceeds for Volkswagen could be anywhere between 18.2 billion to 20.8 billion euros. In case of a successful IPO, Volkswagen will call an extraordinary shareholder meeting in December where it will propose to pay 49% of total proceeds, or 8.9 billion to 10.2 billion euros as a special dividend paid out in early 2023 . Overall 75% minus one ordinary share of Porsche AG's total share capital will be owned by Volkswagen AG after the IPO with Porsche SE owning 12 . 5 % plus one ordinary share while Qatar owns 2 . 5%. The remaining 10% will be free-float .
Key facts about planned landmark listing
Porsche plans to list around $10 billion worth of company on stock exchange later this year in what would be one biggest IPOs ever for carmaker industry if successful . Here are some key facts about deal:
-Share capital: There are two types classifications common stock , Class A and Class B that each have different voting rights attached them . Class A shareholders have one vote per share they own while Class B shareholders get 20 votes per share own . For example , if own 100 Class A shares and 100 Class B then would have 200 total votes as shareholder .
-What's being sold by Volkswagen : The German automaker plans sell 455 . 5 million ordinary ( common) stocks and same number preferred stocks , totaling 911 million overall ... with 25 percent those offered public float .
-How much money does Volkswagen stand make ? If all goes according plan , could bring in up $10 billion based current valuation estimates - though actual amount depends on final pricing determined closer date sale .
- Who ends controlling Porsche AG ? After sale , VW would still maintain control via ownership stake just under 50 percent combined with supervisory board seats it appoints ... meaning couldn't be taken over without consent from Wolfsburg headquarters .
Key facts about planned landmark listing.
Porsche AG will have a total share capital of 911 million shares after the planned stock market listing, with 455.5 million ordinary shares and the same number of preferred shares. The listing is expected to take place in late September or early October.
What's being sold by Volkswagen.
Volkswagen plans to sell 25% of Porsche AG's preferred shares on the stock market, with Qatar Investment Authority (QIA) committing to buy 4.99% and leaving another 20.01% for other investors. Volkswagen is also selling all of its ordinary shares in Porsche AG, which carry voting rights and will be listed on the stock exchange.
How much money will Volkswagen get?
If the IPO values Porsche AG at between 70 billion and 80 billion euros ($70-$80 billion), then Volkswagen could raise 18.2 billion to 20.8 billion euros from the sale of its stake in the company. Of this, 49% (or 8.9 billion to 10.2 billion euros) would be paid out as a special dividend to shareholders in early 2023 if the IPO is successful.
Who will control Porsche AG?
After the IPO, Volkswagen AG will own 75% minus one ordinary share of Porsche AG's total share capital, while Porsche SE will own 12.5% plus one ordinary share and Qatar will own 2.5%. The remaining 10% will be free-float (i.e. not owned by any one shareholder).