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Volkswagen AG (VWAGY) Nails Porsche’s IPO listing at the High End

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Despite volatile stock markets, Volkswagen AG successfully spun out its premium sports car unit, Porsche, with its IPO listing in Frankfurt. This marks one of the biggest listings in Europe by pricing, which came in at the high end of its expected range at €82.50, or $80 per share.

Germany-based multinational automotive manufacturer Volkswagen AG (VWAGY) (DE:VOW) has set the final IPO price for the luxury sports car maker Porsche at the top end of its €76.50 – €82.50 price range. With the estimated market capitalization of Porsche at €75 billion, this marks the largest initial public offering in Europe in the last ten years.

Porsche shares began trading on the Frankfurt Stock Exchange under the ticker symbol P911 today. Shares of Volkswagen AG are trading 5% higher in the early trading hours today, while shares of Porsche AG gained 3% to €85 per share during its debut trading session in Frankfurt.

The parent company, Volkswagen, will hold a three-fourth stake in the newly listed company. Only 25% of Porsche’s preferred stock was sold to investors in the IPO.

Almost half of the IPO proceeds will be distributed to VW shareholders in the form of a special dividend. Volkswagen intends to utilize the other half for further investments in EV transition software.

What does Volkswagen AG do?

Volkswagen AG engages in the production and sale of passenger cars and light commercial vehicles. The firm also develops vehicles and components for the brands of the group.

As per TipRanks, analysts are cautiously optimistic about the stock and have a Moderate Buy consensus rating, which is based on four Buys, two Holds, and one Sell. Volkswagen stock’s average price forecast of €210.71 implies 17.55% upside potential.

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