Porsche's logo is seen outside a Porsche car dealer, amid the coronaviruses disease COVID 19 outbreak in Brussels, Belgium on May 28, 2020. The final price of books closed on Wednesday with a final price of 82.50 euro, the carmaker said at the top end of the 76.50 -- 82.50 euro range it announced earlier this month.
The bumper flotation, estimated to generate around 19.5 billion euros $19.0 billion, is expected to begin at around 9: 15 am local time, at a time when instability in European markets has meant almost no other share sales have taken place and stock of luxury cars have been slumping.
The lowest amount since the 2009 global financial crisis has been raised by companies on the continent since, at $44 billion, of which only $4.5 billion comes from IPOs, according to Refinitiv data.
Volkswagen said that the market's volatility was precisely why fund managers with money to invest were sorely in need of a stable and attractive stock like Porsche AG.
Chris-Oliver Schickentanz, chief investment officer at Capitell, said Porsche was and is the pearl in the Volkswagen GroupVolkswagen Group. The IPO has made it very transparent what value the market brings to Porsche. It also has a positive effect on Volkswagen shareholders. Volkswagen executives had long pondered listing Porsche, a move executives hoped would raise much-needed funds and lift Volkswagen's own value, because it was the subject of tens of billions of costs for a radical shift towards electric mobility and software.
The families Porsche and Piech will have a controlling stake in the carmaker, with 25% plus one ordinary share carrying voting rights in Porsche AG, effectively giving them a minority in the namesake brand.
Over the course of the initial public offering, up to 113,875, 000 preferred shares, with no voting rights, will be sold to investors.