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One of the biggest IPOs ever to hit the European continent is due by the end of the month, as demand for the hotly anticipated IPO appears strong.
After Volkswagen (OTCPK:VWAGY) confirmed the price and date of Porsche AG’s (OTCPK:POAHY) debut in Frankfurt, yet more details on the listing were released on Tuesday in Porsche’s newly published prospectus.
The freshly released document confirms details relayed by Volkswagen (OTCPK:VWAGY) earlier in the week, such as the target valuation, share count, and distribution of preferred shares. In an homage to its popular model, the company plans to issue 911M shares, divided evenly between preferred and ordinary shares. Per the terms of the IPO, 25% of the preferred shares will be held by Porsche Holding Stuttgart GmbH. As such, a smaller portion of non-voting preferred shares are due to list on September 29. The price range for these shares has been set at €76.50 to €82.50, corresponding to possible over-allotments of €8.71B to €9.39B.
“We are on track – we believe Porsche AG, with its robust business model and compelling financial performance, is ready to launch its IPO”, Lutz Meschke, Deputy Chairman of the Executive Board and Board Member responsible for Finance and IT of Porsche AG said on Tuesday.
The Qatar Investment Authority (QIA) will be the “cornerstone investor” of the IPO, committing to acquire 4.99% of the preferred shares for €1.74B to €1.88B subject to IPO pricing. Norges Bank Investment Management, T. Rowe Price and ADQ joined the Middle Eastern Sovereign Wealth Fund by committing €750M, €750M, and €300M, respectively. The offering period, which began on Tuesday, is expected to end one day prior to the IPO date of September 29.
“We are now in the home stretch with the IPO plans for Porsche and welcome the commitment of our cornerstone investors,” Volkswagen CFO Arno Antlitz said.
It is worth noting that analysts had anticipated a valuation of up to €85B ahead of the listing, leaving the actual slated price below some more bullish expectations. Nonetheless, the IPO is set to be one of the largest to ever hit a European exchange.
Demand for the listing easily exceeds the full deal size, according to bookrunners speaking anonymously to Reuters. The report indicated that the lower than initially-projected pricing of the listing is “being well-received on the market” with sources close to the IPO seeing significant institutional demand. Retail demand, however, remains unclear.
The German automaker has enlisted BofA Securities, Citigroup, Goldman Sachs and J.P. Morgan for an all-American roster of global coordinators and joint bookrunners for the IPO. Meanwhile, BNP Paribas, Deutsche Bank, Morgan Stanley, Santander, Barclays, Société Générale and UniCredit have been mandated as Joint Bookrunners, while Commerzbank, Crédit Agricole, LBBW and Mizuho have been appointed as co-lead managers. Mediobanca is designated as the financial advisor to Porsche (OTCPK:POAHY).
Volkswagen (OTCPK:VWAGY) will receive all of the proceeds of the up to €75B IPO, anticipated to range from €18.1 to €19.5B.
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Image and article originally from seekingalpha.com. Read the original article here.