The actions of Volkswagen fell on Monday, as investors showed a muted reaction to news that the automaker is eyeing a valuation of up to 75 billion euros ($75 billion) for the sports car brand. Porschein what could be third largest IPO in Europe.
Porsche is seeking to win over investors with its track record of success and high margins, even as shares in other luxury automakers such as Ferrari y Aston Martin have suffered this year in the tumult of European stock markets.
Volkswagen, which some analysts say could unlock the value of its own shares by listing the luxury brand, saw its shares fall slightly to €144.62 from Friday’s close of €145.46, after rising 3% in pre-open trading. From the market.
Uncertainties surrounding the governance of the two companies and the strong control of Volkswagen’s major investors over strategy in both could explain the markets’ lack of enthusiasm, said Ingo Speich, head of sustainability and corporate governance at Deka Investment, one of the top 20 Volkswagen investors.
“If the separation of two companies improves the quality of management and the strategic direction of a business, that will be reflected in the valuation,” Speich said. “It is fundamentally right for Porsche AG to become more independent, but this is not an independent organization.”
The valuation announced on Sunday for Porsche AG of €70-75 billion is slightly below some investors’ estimates of up to €85 billion, but still far exceeds the valuation of other German automakers such as €49 billion. million euros of BMW or the 61,000 million euros of Mercedes-Benz.
It is also approaching Volkswagen’s market capitalization of 88 billion euros.
Shares in Porsche SE, Volkswagen’s largest shareholder and set to take a large stake in Porsche AG, rose 2.42%, outperforming Germany’s benchmark DAX index.
Volkswagen said on Sunday it would value the preferred shares in the Porsche AG placement at 76.50-82.50 euros per share.
A prospectus with more details of the listing is expected to be published this Monday afternoon. Volkswagen plans to sell up to 12.5% of the share capital of Porsche AG to investors in the form of preference shares, which do not have voting rights.
Major investors have already demanded nearly 40% of the offering: Qatar Investment Authority, Volkswagen’s third-largest shareholder, has agreed to buy 4.99%, while Norway’s sovereign debt wealth fund and T. Rowe Price will buy shares worth 750 million euros each, according to the statement on Sunday.
ADQ of Abu Dhabi will buy shares worth 300 million euros.
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