The second largest car group in the world, Volkswagen, gave the green light on Monday (5) to the listing of its subsidiary, Porsche, despite the nervousness in the stock market.
Volkswagen “has decided today, with the approval of the Supervisory Board”, to list the shares of its subsidiary Porsche AG “according to the development of the capital market”; listing is expected “at the end of the year”, according to information from the two decision-making bodies of the German group.
The German manufacturer had presented its project last winter, specifically on February 24, coinciding with the first day of the Russian invasion of Ukraine.
The economic fallout from the offensive, particularly on the stock market, called into question the luxury sports car brand’s IPO schedule.
The company, whose headquarters are in Zuffenhausen, near Stuttgart (south-west), is worth between 60 and 85 billion euros or dollars, according to Bloomberg.
Porsche is currently 100% owned by the Volkswagen group, which in turn is controlled by the financial organization Porsche SE, in which the Porsche-Piëch family holds the majority of voting rights (around 54%).
The capital of Porsche was divided in two. On the one hand, there will be 50% of preferred shares, without voting rights, and on the other hand, 50% of common shares, with voting rights.
In the coming weeks, investors in the market will be offered the possibility to join, “up to 25%” of the proposed shares at an undisclosed price.
At the same time, Volkswagen approved the sale of “25% plus one share” of the “ordinary” shares of Porsche AG to the holding company Porsche SE.
In this way, Porsche-Piëch will be able to maintain a controlling minority and will be able to gradually increase its control of the family business.
By relinquishing part of its control to Porsche, Volkswagen will be able to raise the billions it needs to finance its investments in electric, connected and autonomous vehicles.
© Agence France-Presse