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Porsche goes public, listed on Frankfurt Stock Exchange

Porsche was listed on the Frankfurt Stock Exchange, at a valuation of around 78 billion euros ($117.84 billion), prompting the company to call it a major initial public offering (IPO). by market capitalization in Europe.

This requirement is based on the calculated value of the offer price for preferred shares and the corresponding value for common shares.

The preferred shares cost 82.50 euros ($124.64) and are listed on the Frankfurt Stock Exchange under the trading symbol P911.

The Volkswagen Group is placing 113,875,000 of its non-voting preferred unregistered shares in the IPO, including 14,853,260 preferred shares to cover the overallocations.

This figure represents 25% of preferred shares and 12.5% ​​of the issued and outstanding share capital of Porsche AG.

7.7% of the preferred shares will go to private investors, although Porsche says the offer is oversubscribed and not all orders from retail investors are available. can be fully considered.

Porsche said the IPO “opens up greater business freedom” for the company.

Existing domination and loss transfer agreements with Volkswagen are set to expire at the end of 2022, to be replaced by an “arms length” industrial cooperation agreement that will govern the future relationship. their future.

Porsche’s IPO will also see Volkswagen AG potentially generate a total of between 9.4 billion and 10.1 billion euros ($14.19-15.25 billion).

Volkswagen AG will convene an extraordinary general meeting in December 2022 to propose to its shareholders a special dividend of 49% of the total proceeds in 2023.

“Today, a big dream has come true for Porsche. Porsche CEO Oliver Blume said.

“We aim 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 exercise social responsibility. “

Porsche wants 80% of its vehicles to be EVs by 2030 and is aiming for a net carbon neutral value chain by 2030 with a net carbon neutral phase for its future EVs.

“We aim to inspire customers and fans around the world – with successful products and compelling financial performance. We want to share this passion with investors and we are delighted to welcome those who have become part of our unique Porsche family in this way,” said Lutz Meschke, Vice President Chairman of the executive board of Porsche AG and member of the executive board in charge of finance said and it.

“Together, we are working with determination to execute our long-term strategy. Here we can take advantage of the best of both worlds: the advantage of our luxury positioning and the partnership with the Volkswagen Group. “

Porsche says it is in a solid financial position and expects an operating profit of 17% to 18% for this calendar year, and in the medium term is targeting a similar profit of 17 to 19% with 20% target.

In the coming years, the company wants to improve its EBITDA margin (earnings before interest, taxes, depreciation and amortization) to 25 to 27%.

Among its investors, the Qatar Investment Authority has previously committed to buying 4.99% of preferred shares as a platform investor, with other investors including Norges Bank Investment Management , T. Rowe Price and ADQ.

The Porsche-Piech family – through Porsche Automobil Holding SE – will purchase 25% plus one common voting stock in Porsche, giving the Porsche-Piech family a blocking minority stake in the eponymous brand. their.


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