Porsche IPO Commands Valuation Of Up To $85B Amid Global Headwinds: Report

  • Porsche drew investor interest for its initial public offering at a valuation of up to $85 billion, despite market headwinds, Bloomberg reports.
  • Volkswagen AG's VWAGY luxury brand has won pre-orders exceeding the shares on offer at a valuation between 60 billion and 85 billion euros ($85 billion) despite the Russia-Ukraine crisis, soaring energy prices, and galloping inflation. 
  • Porsche looks to share its Frankfurt IPO plans in the first week of September.
  • Porsche attracted bigwig investors, including T. Rowe Price Group, Inc TROW and Qatar Investment Authority. It also drew billionaires, including the founder of energy drink maker Red Bull, Dietrich Mateschitz, and LVMH-Moet Hennessy Louis Vuitton LVMUY Chairman Bernard Arnault.
  • Porsche reportedly has enough demand to fill the shadow order book at the top end of the range and is oversubscribed at the lower end.
  • IPO investors will be able to buy preferred shares in Porsche without any voting rights. 
  • The report added that powerful billionaire Porsche and Piech clan, which controls VW through voting stock, would receive a special dividend to fund buying a blocking minority stake in Porsche.
  • Earlier, VW CFO Arno Antlitz assured plenty of investor appetite and capital for an IPO.
  • Volkswagen is also amid an expensive transition to electric vehicles akin to its peers.
  • VW has been losing its share in its biggest market due to poor handling of the chip crisis and lack of digital features.
  • In contrast, after quickly turning the Shanghai plant into its most productive globally, Tesla Inc TSLA added factories in Austin, Texas, and near Berlin this year. 
  • Price Action: TROW shares traded lower by 2.24% at $117.00 in the premarket on the last check Monday.
  • Photo Via Company
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