Porsche is looking to raise $9.4 billion in its initial public offering, valuing the luxury car maker and Formula 1 hopeful at as much as $78 billion.
Earlier this month, Volkswagen announced plans to list Porsche — one of its 12 car companies — on the Frankfurt stock exchange, and will price shares of the German sports car brand between $76.58 and $82.58.
- The transaction would make Porsche Europe’s third-largest IPO ever.
- Volkswagen is only offering roughly 12.5% of Porsche.
- The company will use 49% of the proceeds to pay shareholders in a special dividend.
- Porsche is scheduled to start trading on Sept. 29.
An IPO has already sparked the interest of potential investors. The Qatar Investment Authority has indicated plans to purchase a 4.99% stake in Porsche, while ADQ — an investment arm of the Abu Dhabi government — as well as T. Rowe Price and others also plan to acquire Porsche shares.
Deal Breaks Down
Porsche was expected to secure a deal for 50% of Red Bull’s F1 team and 50% of Powertrains, but the two parties couldn’t come to an agreement.
Red Bull’s investors reportedly weren’t willing to sell a stake in the F1 team and, among other issues, disagreed over the power to name drivers for a joint race team.
Another Volswagen company, Audi, announced plans in August to enter F1 in 2026 as a power unit supplier.