The supervisory board of German automaker Volkswagen's ( OTCPK:VWAGY ) ( OTCPK:VWAPY ) is scheduled to meet on Sunday to proceed with the IPO plans for its Porsche ( OTCPK:POAHY ) brand, Reuters reported on Thursday citing sources close to the matter .
The IPO will issue 911M Porsche AG ( OTCPK:POAHY ) shares in a nod to its most famous model. The shares being offered will be split into 455.5M preferred shares and 455.5M ordinary shares, according to the website for the share placement. Only the preferred shares will be listed.
Porsche SE, Volkswagen's top shareholder, will acquire 25% plus one of the ordinary shares at a 7.5% premium to the preferred shares.
Details on the price range, valuation and confirmed cornerstone investors are likely to be announced after the meeting on Sunday.
Several sources said added that investor roadshows are due to complete this Friday, which will give senior executives time to hold discussions over the weekend before opening the book building process early next week. A stock exchange prospectus is expected to be published on Monday, following which institutional and private investors will be able to subscribe to Porsche shares.
Plans for an IPO of the Porsche brand have been under review since Feb , with updates provided into the summer. The most recent update on the specific details of the planned IPO was provided on Sep 05 .
Read more on the recent CEO transition at Volkswagen .
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Porsche IPO to issue 911M shares, say sources