RIYADH: Volkswagen-owned Porsche is set to price its initial offering of stock at the high end of the planned range, Bloomberg reported
The share price was set at $80 per share, valuing the company at $73 billion, as it aims to pull off Europe’s largest initial public offering in a decade despite the turmoil in capital markets.
Porsche opens its Frankfurt stock market trading on Thursday, Sep. 29, for the first time.
The sale will help Volkswagen fund its electrification push, while investors get an emotional brand akin to Ferrari NV, which also separated from parent Fiat in 2015.
“If you can pull off an IPO in such a difficult market, it shows the attractiveness of the business,” Jefferies analyst Philippe Houchois told Bloomberg.
“Porsche is a mature, well-known business that doesn’t need to raise capital. Putting it on the market as a fully formed business –- being able to pull that off is quite impressive.”
The company is targeting revenue of up to $37 billion this year and a return on sales of up to 18 percent, up two percentage points from last year. Returns are to climb above 20 percent in the long term.
