Volkswagen AG (OTCMKTS: VWAGY) aims to raise USD9.4 Billion from the initial public offering of its luxury sportscar maker Porsche AG, hopefully valuing the company at as much as USD74.1 Billion. The IPO could be Europe’s biggest listing in over a decade, according to Bloomberg. The automaker’s shares rose 1.4% in Frankfurt trading upon the news.
Amid the listing, 911 million Porsche AG shares will be divided into 455.5 Million preferred shares and 455.5 million ordinary shares. At least 113,875,000 preferred shares that carry no voting rights, will be allocated to investors throughout the IPO.
According to Volkswagen, The sovereign wealth funds of Qatar, Abu Dhabi, and Norway along with mutual fund company T Rowe Price are set to subscribe EUR3.7 Billion worth of preferred shares as cornerstone investors.
“We are now in the home stretch with the IPO plans for Porsche and welcome the commitment of our cornerstone investors,” Volkswagen Chief Financial Officer and Chief Operating Officer Arno Antlitz said.
VW is ultimately selling 25% of Porsche’s preferred shares, or approximately 12.5% of the whole company, to the public. The deal will return effective control of Porsche to the founder’s heirs, that will own 25% plus one share of Porsche’s voting stock.