In one of Europe’s largest ever listings, Porsche AG shares are expected to trade at the top end of the previously disclosed range, potentially valuing the sports car company at much to 75 billion euros ($72 billion).
Porsche’s books were covered numerous times prior to the company’s market debut on September 29, according to a number of bookrunners participating in the transaction.
The largest automaker in Europe and owner of Porsche, Volkswagen, announced earlier this month that it would value its preferred shares at up to 75 billion euros by pricing them between 76.50 and 82.50 euros per share.
Orders below the top of the range run the risk of not being filled since the amount of demand has surpassed the size of the entire offer, according to bookrunners, one of whom called the demand “very robust.”
On September 28, books will close at 1200 GMT, and on September 29, shares of Porsche AG, the company that created the classic 911 model, are anticipated to begin trading on the Frankfurt Stock Exchange.
Despite recent declines in the value of other luxury automakers like Aston Martin and Ferrari, there is still a high level of demand.
According to Refinitiv data, at the high end of the valuation, the listing may be the largest in Europe since 1999 and the second-largest IPO in Germany history.
At a time when European market turbulence has prevented nearly all other share sales from occurring, the blockbuster flotation, which is expected to generate between 18.1 billion and 19.5 billion euros, takes place.
There will be 455.5 million preferred shares and 455.5 million common shares issued out of a total of 911 million Porsche AG shares.
During the first public offering, up to 113,875,000 preferred shares with no voting rights would be issued to investors.
