Porsche AG’s initial public offering (IPO) raised €19.5 billion for parent company the Volkswagen Group, Reuters has reported.
The listing of 911 million shares – an apparent reference to its long-running sports car – was split 50:50 into preferred and ordinary shares. The former gets priority over receiving dividends, whereas the latter grants voting rights on issues including company strategy. Only the preferred shares were publicly traded.
This amounted to 12.5% of Porsche AG being sold to investors in a “historic moment” for the company, according to CEO Oliver Blume. The flotation puts its value at around €75bn.
Some 49% (€9.6bn) of the proceeds are expected to be given to shareholders via a dividend, following an extraordinary general meeting in December.
The remaining 51% will be used by the Volkswagen Group toward the development of future electric cars.
The Volkswagen Group sold a quarter (plus one) of the ordinary shares to Porsche SE, a holding company that holds a majority stake in the Volkswagen Group, giving the founding Porsche and Piëch families veto powers for Porsche’s major strategic decisions.
The Qatar Investment Authority – which also owns 10.5% of the Volkswagen Group – purchased a 4.99% stake in the preferred shares available.
The sovereign funds of Abu Dhabi and Norway also participated, purchasing €300m and €750m in preferred shares respectively. Investment fund T Rowe Price accounted for an additional €750m.
Volkswagen Group chief financial officer Arno Antlitz said prior to the IPO that it would also give the firm greater flexibility around an IPO for its battery division, Powerco.
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