Volkswagen targets $70.1 billion to $75.1 billion valuation in planned Porsche IPO

The name of car manufacturer Porsche is attached to the curved facade of the new Porsche Center in Magdeburg.

Stéphane Schulz | photo alliance via Getty Images

volkswagen will price preferred shares in Porsche AG’s planned IPO at 76.50 euros to 82.50 euros ($76.61 to $82.62) per share, the automaker announced Sunday, generating proceeds between 8.7 and 9.4 billion euros.

The price range, which translates to a valuation of 70-75 billion euros, would make it the second largest IPO in German history and, at the high end of the valuation, the third in Europe ever recorded, according to Refinitiv data.

Trading will begin Sept. 29, the automaker said.

A total of up to 113,875,000 preferred shares of Volkswagen AG – which do not carry voting rights – will be placed with investors during the IPO.

In accordance with an agreement reached earlier in September between Volkswagen AG and its main shareholder Porsche SE, 25% plus one ordinary share of the sports car brand, which carries voting rights, will go to Porsche SE at the price of the preferred shares plus a Premium of 7.5%.

This brings the total proceeds between 9.36 billion and 10.10 billion euros, according to the press release.

A stock prospectus is expected to be published on Monday, after which institutional and private investors will be able to subscribe to Porsche shares.

As part of the listing, 911 million Porsche AG shares will be divided into 455.5 million preferred shares and 455.5 million ordinary shares. Only preferred shares will be listed.

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