Porsche IPO to raise up to $9.4 billion for parent VW

Germany — With the acquisition moving forward during a period of significant market turmoil, Volkswagen Group is aiming for a valuation of up to 75 billion euros ($75 billion) for luxury sports car company Porsche, which is less than the prior top-end objective of up to 85 billion euros. Porsche IPO might raise up to $9.4 billion for parent company VW, while VW is projected to be valued at $75 billion overall

VW Group will value preferred shares at between 76.50 and 82.50 euros per share in Porsche AG’s initial public offering, the automaker announced on Sunday. This translates to a valuation between 70 billion and 75 billion euros. According to Refinitiv data, at the upper end of the range, it would rank as Europe’s third largest IPO ever.

• Porsche IPO might raise up to $9.4 billion for parent company
• German automaker specializing in SUVs and high-performance sports cars
• Porsche AG’s IPO of preferred shares will be priced by VW Group at 76.50 to 82.50 euros per share.
• It was established in 1937 by the German Labor Front and is best known for its iconic Beetle. It is the flagship brand of the Volkswagen Group
• Porsche aims to attract wealthy customers, and after the IPO, its EBDITA will be lower than Ferrari’s
• Porsche has major market share of 30%+ comparing to Ferrari’s and Lamborghini
• Porsche is a market leader in 150k to 250k Euro range.
• Porsche aims to generate revenue of up to 40 billion euros and achieve a return on sales of up to 20% this year.
• What are the major changes we see post this landmark IPO, we have to wait for it.