Porsche IPO successfully raises €19.5 billion in funds

As reported prior, German sportscar marque Porsche recently listed itself publicly where a total of 911 million shares – symbolically representing its iconic 911 model – were traded by parent company Volkswagen Group through an Initial Public Offering (IPO). Said effort culminated late last week after reportedly raising a total of €19.5 billion (RM88.98 billion) in funds.

The listing of said 911 million shares in total were reportedly split evenly at 50:50, comprising preferred and ordinary shares. The former received priority over receiving dividends, whilst the latter grants voting rights regarding issues that also cover company strategy, but only the preferred shares were traded publicly.

What this amounts to was 12.5% of Porsche of Porsche AG being sold to investors, whereas the flotation value was placed at around €75 billion (RM342.23 billion). In describing the landmark effort, Porsche CEO Oliver Blume calls it a “historic moment” for the brand.

Up to 49% of the proceeds are expected to be given to shareholders via dividend payout in December this year following an extraordinary general meeting. The remaining 51%, on the other hand, will be used by parent company Volkswagen Group to further spur developments of future electric car models.

Ahead of this IPO, Volkswagen Group had sold a quarter (plus one) of the ordinary shares it held to Porsche SE, a dedicated holding company that holds a majority stake in the Volkswagen Group. This, in turn, grants veto powers over major strategic decisions for the Porsche brand in the hands of the founding Porsche and Piech families.

Besides this, the Qatar Investment Authority also purchased a 4.99% stake in the form of preferred shares. Said sovereign wealth fund also owns a 10.5% stake in Porsche parent company Volkswagen Group. Sovereign funds from both Norway and Abu Dhabi also participated, purchasing €300 million (RM1.369 billion+) and €750 million (RM3.422 billion+) worth of preferred shares respectively.

As for the remaining €750 million (RM3.422 billion+), this was taken up by investment fund firm T Rowe Price.

Prior to the IPO, Volkswagen Group CFO Arno Antlitz said that the effort would grant the firm greater flexibility around a planned IPO for its Powerco battery division.