Germany-based automaker Volkswagen AG (VWAGY) seeks to raise nearly $9.41 billion from the initial public offering (IPO) of Porsche AG. The automaker has set the price range for Porsche’s preferred shares between €76.50 and €82.50, valuing the iconic sports carmaker at about $78 billion.
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Notably, Volkswagen is offering just 25% of Porsche’s preferred stock to investors in the IPO. Shares of Porsche AG are all geared up to begin trading on the Frankfurt Stock Exchange beginning September 29.
Why Have VWAGY Shares Dropped?
As a result of the Russia-Ukraine situation driving up energy prices, Volkswagen stock has fallen by around 29.3% so far this year. According to the TipRanks tool, retail investors seem to be a little optimistic about the Volkswagen stock, as they have purchased about 0.5% of the company’s shares in the last 30 days.
On the contrary, the financial bloggers are 100% bullish on the Volkswagen stock, compared to the sector average of 65%.
Final Thoughts
Volkswagen plans to use the IPO proceeds to strengthen its footing in the electric vehicle (EV) space. The company aims to set up a network of battery factories for EVs. Not long ago, the company announced its plans to introduce a fully-electric SUV and a pickup truck in the United States. It also aims to widen its footprint into more revolutionary technologies like self-driving cars.
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