Shares in Dr. Ing. h.c. F. Porsche AG Preferred debuted on the Frankfurt Stock Exchange on Thursday, as owner Volkswagen (VWAGY) hopes to raise about €9.4 billion in one of the largest European initial public offerings on record.
VW priced 12.5% of preference shares in the famous car brand at €82.50 per share, hitting the top end of its previously estimated range and valuing the company at approximately €75 billion. These stakes do not hold any voting rights.
The listing will also see the Porsche-Piëch families snap up 25% plus one share in ordinary shares in the Stuttgart-based group at a 7.5% premium. The move will allow the powerful clan to regain direct control over a former family enterprise through its investment vehicle, Porsche Automobil Holding SE.
In a statement, VW Group chief financial officer Arno Antlitz said the IPO grants greater autonomy to Porsche. He added that VW will also be able to use the funds garnered by the flotation to boost its transition to electric vehicles and digitalization.
"Today is a good day for Porsche and for Volkswagen," Antlitz said.
VW has also pledged to use half of the proceeds to deliver a one-time special dividend, with the rest dedicated to its electrification goals.
Shares in Porsche AG edged up marginally in early trading, while VW and Porsche SE fell.
VW has moved ahead with the float of Porsche despite deep concerns over the current macroeconomic backdrop. Supply chain constraints and soaring inflation have recently placed heavy pressure on automakers' ability to both produce and sell their vehicles.
However, Porsche's backers have argued that it can weather these headwinds thanks in part to the resilient recent demand for luxury brands from wealthy car buyers. In 2021, peers like Bentley and Rolls-Royce reported record revenues.
By Scott Kanowsky