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Here are key facts about the structure of the planned landmark listing:
SHARE CAPITAL
– Porsche’s share capital is being split in two, with 455.5 million ordinary shares and the same number of preferred shares, totalling 911 million shares overall, a play on the company’s most iconic model.
– Ordinary shares carry voting rights, which matter when it comes to the question of who controls the company.
– Preferred shares don’t carry voting rights, but their holders will receive an additional dividend of 0.01 euros apiece on top of every dividend the company pays out on its ordinary shares.
– Shares in Porsche AG are expected to start trading on Frankfurt’s stock exchange on Sept. 29.
WHAT’S BEING SOLD BY VOLKSWAGEN?
– As part of the deal, Volkswagen plans to sell 25% plus one ordinary share in Porsche AG to Porsche SE, the holding firm controlled by the Piech and Porsche families, effectively giving them a blocking minority in the namesake brand.
– Volkswagen also plans to sell 25% of preferred shares on the market. Qatar, Volkswagen’s third-largest shareholder, has already committed to buy 4.99%, leaving another 20.01%, or 10% of Porsche’s total capital, to other investors.
– The sovereign wealth funds of Norway and Abu Dhabi and mutual fund company T. Rowe Price have also committed to buying 1.8 billion euros worth of preferred shares between them.
– Porsche SE, already Volkswagen’s largest shareholder and holder of the majority of voting rights in Europe’s top carmaker, has pledged to pay a 7.5% premium for its ordinary shares over the placement price of the preferred shares.
HOW MUCH MONEY WILL VOLKSWAGEN GET?
– Volkswagen’s proceeds from the sale of ordinary and preferred shares will be between 18.1 billion and 19.5 billion euros.
– In case of a successful IPO, Volkswagen will call an extraordinary shareholder meeting in December where it will propose to pay 49% of total proceeds, or 8.9 billion-9.6 billion euros, to its shareholders in early 2023 as a special dividend.
WHO WILL CONTROL PORSCHE AG?
– Volkswagen AG (OTC:VWAGY) and Porsche SE will jointly own all of Porsche AG’s ordinary shares in a 75% minus one share-25% plus one share split.
– Overall, 75% minus one ordinary share of Porsche AG’s total share capital will be owned by Volkswagen AG after the IPO.
– Porsche SE will own 12.5% plus one ordinary share of Porsche AG’s total capital while Qatar will own 2.5%.
– The remaining 10% will be free-float.
($1 = 1.0004 euros)
