Volkswagen to price bumper Porsche IPO at top end of range

Berlin  — Porsche shares are poised to price at the top end of the previously announced range, potentially valuing the sports car brand at up to €75bn in one of Europe’s biggest-ever listings.

Several bookrunners involved in the deal said Porsche’s books were covered multiple times ahead of the company’s market debut on September 29.

Volkswagen, Europe’s largest carmaker and Porsche’s owner, said earlier in September it would price preferred shares at €76.50-€82.50, giving a valuation of up to €75bn.

Orders below the top end of the range risk missing out, as indicated demand has exceeded the full deal size, bookrunners said, with one describing demand as “incredibly robust”.

Books will close at midday on September 28, with shares in Porsche, maker of the iconic 911 model, expected to start trading on the Frankfurt Stock Exchange on September 29.

The strong demand comes even though valuations of other luxury carmakers, such as Aston Martin and Ferrari, have fallen recently.

At the upper end of the valuation, the listing could be Germany’s second-largest on record and the biggest in Europe since 1999, Refinitiv data showed.

The bumper flotation, generating between €18.1bn and €19.5bn, comes at a time when instability in European markets has meant almost no other share sales have taken place.

A total of 911-million Porsche  shares will be divided into 455.5- million preferred shares and 455.5-million ordinary shares.

Up to 113,875,000 preferred shares, carrying no voting rights, will be sold to investors over the course of the initial public offering.

Reuters