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The Markets
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The Markets
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Manufacturing & engineering

Porsche IPO set to be largest in Europe since 1999

Reuters reported that book runners involved in the deal said they were covered multiple times

Porsche’s initial public offering (IPO) tomorrow is set to come in at the upper end of its valuation, making it Europe’s largest flotation since 1999.

Shares were priced between €76.50 to €82.50, valuing the luxury vehicle manufacturer at €75bn.

Reuters reported that book runners involved in the deal said they were covered multiple times ahead of its listing on Thursday, with books now closed.

Consequentially, those who failed to get in at the lower price range will hope they can pick them up on the market once they are listed in Frankfurt, though only a 25% portion of Porsche is being listed by parent Volkswagen Group (XETRA:VOW).

VW is using some of the funds from selling down its stake to drive its own pivot towards electric vehicles, as it targets all its vehicles to be battery-powered by 2035.

The IPO comes 13 years after the Porsche and Piech families was forced to sell the sports-car business to VW, with the listed family business Porsche Automobil Holding SE having failed in an attempt to take control of the larger company, though still owning 53% of voting rights at VW.

The listed Porsche will have a dual share structure, similar to that of VW, with voting and non-voting shares.

VW will own 75%, while Porsche Automobil will own a 25% blocking stake.

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