Bloomberg "Europe Stock Market's Largest Scale in 10 Years"
[Asia Economy Reporter Yujin Cho] Porsche, which is planning to list on the German stock market at the end of this month, is expected to have an initial public offering (IPO) size of up to 9.4 billion euros (approximately 13 trillion KRW).
According to major foreign media including Bloomberg on the 18th (local time), Porsche, the sports car brand under Germany's Volkswagen Group, will issue a total of 113.875 million preferred shares at an offering price of 76.50 to 82.50 euros per share, raising 8.7 to 9.4 billion euros (approximately 12 to 13 trillion KRW).
Volkswagen plans to list only some of the preferred shares by dividing Porsche's 911 million shares into 50% common shares (455.5 million shares) and 50% non-voting preferred shares (455.5 million shares). According to Porsche's IR materials, only 25% of the preferred shares will be released to the market through this IPO.
A source familiar with the matter stated that the Volkswagen Group Supervisory Board held a meeting on the day and resolved accordingly. The listing date was set for the 29th of this month.
If this IPO succeeds, Porsche's corporate value is expected to reach up to 75 billion euros. Porsche's valuation was initially estimated at up to 85 billion euros at the start of the IPO process, but it was set lower than the initial target considering market uncertainties such as the Russia-Ukraine war and inflation.
Inside and outside the market, there are assessments that it is a risky time to debut on the stock market due to external negative factors such as sluggish stock markets, high inflation, and concerns over an energy crisis caused by Russia's suspension of gas supplies to Europe.
According to the German Automobile Association, the number of finished car deliveries to customers in Europe this year is expected to decrease by 4% compared to the previous year, so sales recovery to pre-COVID-19 pandemic levels is not anticipated.
The Wall Street Journal (WSJ) commented, "It will test investors' confidence amid high inflation and uncertainties caused by the Ukraine war."
However, Stifel Financial in the U.S. analyzed that since Volkswagen is investing 52 billion euros by 2026 to develop electric vehicles, Porsche's listing will help raise funds necessary for the transition to electric vehicles, making this IPO clearly positive for shareholders.
Bloomberg reported that if the IPO proceeds as planned, Porsche will have the largest IPO in the European stock market in the past 10 years.
Porsche is expected to disclose its IPO plans and business performance in a securities registration statement to be submitted as early as the 19th.
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