Porsche's IPO has raised €9.08bn for parent Volkswagen after the remaining greenshoe was exercised on Tuesday following nearly a week without intervention from stabilisation manager Bank of America.
The final size confirms the German company's IPO as the largest in Europe for more than a decade, since Glencore's US$10bn deal in 2011, and the seventh-largest ever in EMEA despite challenging conditions around the world.
Shares are above the €82.50 issue price but have yet to settle, falling to €87.30 on Monday and to €83.60 on Tuesday, shedding 9.2% in two days.
As 3.8m preferred shares were bought during stabilisation, just over 11m shares were exercised to take final IPO proceeds to €9.08bn and the free-float of the prefs to 24.2%, and 12.1% of the carmaker.
Bank of America actively bought on the first three days of trading following their debut on September 29, with stabilisation ending with the purchase of less than 100 shares on the fourth day of trading on October 4. The stabilisation was successful with minimal purchases needed to keep the stock close to the issue price before natural buying came in.
The IPO attracted massive demand following high engagement from investors. It priced at the top of the range and has traded up in a difficult market so bankers will feel they have earned the incentive fee on the transaction.
Volkswagen agreed a base fee of just 0.6% for the IPO, which works out to a pot of around €31.2m, once removing the €3.88bn cornerstone tranche. Four global coordinators are taking 70% of the pot, about €5.5m each. Bank of America, Citigroup, Goldman Sachs and JP Morgan will be hoping to top that up substantially with the 0.4% incentive fee.
Incentive fees are discretionary and can be paid in any proportion the client wishes and need not be distributed equally.
Senior bookrunners BNP Paribas, Deutsche Bank and Morgan Stanley earned 5% of the fee pot, with the remaining bookrunners Barclays, Santander, Societe Generale and UniCredit earning 3.75% each.
Co-lead managers Commerzbank, Credit Agricole, LBBW and Mizuho, and UBS, which handled sales in Switzerland, have separately agreed fees with VW.
While bankers repeated throughout the process that a unique asset like Porsche offered little insight or momentum for the rest of the IPO market, the one area in which it is likely to have an impact is the return of in-person roadshows.
There were significant numbers of investors seen in face-to-face meetings for Porsche both before launch and once it was in the market. Bankers on Porsche said that around 90% of meetings were being conducted in person and the conversion rate for one-on-ones was said to be more than 95%, a success rate that is hard to ignore.