Volkswagen floats Porsche on the stock market: a big deal in sight

Volkswagen floats Porsche on the stock market: a big deal in sight


Volkswagen puts a new turbo in the Porsche engine. On Tuesday, the group announced its intention to proceed with Porsche’s proposed IPO launched last winter, in what could be one of the largest global valuations, despite market concerns. In a press release published on Monday evening, the second largest car group in the world indicates that its management board, ” decided with the approval of the Management Board “, to list the shares of the Porsche AG subsidiary “according to further developments on the capital market” with a view to ” to implement by the end of the year “. The 911 maker will be listed on the Frankfurt Stock Exchange.

Oliver Blume, the boss who must reinvent Volkswagen without copying and pasting Tesla

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Investors expect a valuation between 60 billion and 85 billion euros. If the upper end of the range is reached, it could be the largest IPO in German history and one of the largest in Europe since 1999, according to Refinitiv data. The German manufacturer launched its project last winter, on February 24 exactly, the first day of the Russian military invasion of Ukraine. The economic turmoil that followed, especially on the stock market, cast doubt on the timing of this IPO.

International investors including the American T Rowe Price Group, and the sovereign wealth fund of the emirate of Qatar, have already expressed their interest in joining the operation, along with billionaires such as the founder of Red Bull, Dietrich Mateschitz, as well and the president. of LVMH, Bernard Arnault. Porsche is currently wholly owned by the Volkswagen Group. This in turn is controlled by a financial company, called Porsche SE, in which the Porsche-Piëch family holds the largest number of voting rights (approximately 54%).

The German region of Lower Saxony is also a direct shareholder of Volkswagen, a construction that prevents the Porsche-Piëch family, the majority shareholder of the Porsche holding company, from having a strong influence on the Volkswagen group and therefore on its nugget. Porsche’s capital was divided into 50% preference shares, giving enhanced but non-voting dividends, and 50% ordinary shares with voting rights. Institutional investors will be able to register up to 25%” of the preferred shares, at a price yet to be determined They will also be released to the general public in Germany, Austria, France, Italy, Spain and Switzerland.

At the same time, VW authorities approved the sale of ” 25% plus one share ” Actions ” normal from Porsche AG to Porsche SE Holding. Thus the Porsche-Piëch clan will hold the minority that prevents the family business launched by the engineer Ferry Porsche after the Second World War.

L'” THERE IS » of Porsche must also increase the stock market valuation of the parent company, which lags behind at 85 billion euros, especially against the main competitor Tesla which is worth ten times more.

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ZOOM : GOAL: 80% ELECTRIC VEHICLES BY 2030

By giving up part of its control over Porsche, Volkswagen will get the billions needed to finance its investments in electric, connected and autonomous vehicles. Part listed on the stock market, Porsche will have greater freedom “for being one of them” the most successful car manufacturers in the world “, emphasizes the boss of Volkswagen, Oliver Blune. Porsche, the manufacturer of the Taycan, plans to launch a new all-electric SUV model. To meet the global demand for electric luxury cars, 80% of the manufacturer’s cars will be fully electric by 2030 , promises the manager who, in July, presented ambitious targets, with operating profit in relation to sales of more than 20% on the market. long term. Oliver Blune, who took the reins of Volkswagen on September 1, reckons ” electric acceleration where possible in a difficult economic environment.

The new CEO should continue the main lines of strategy led by his predecessor: the transition towards electric mobility and connectivity. ” The management board around Herbert Diess has done a good strategic and technological job “, he estimated in front of the seminar that brought together the executives of the group.

However, Mr. Blume comes to control in “ a difficult time “. The electric and connected revolution involves tens of billions of euros of investment, while the group posted mixed results in the second quarter. Oliver Blume could measure the expansion of the engine using alternative fuels. At risk, on the contrary, of not being able to move forward ” absolutely about electricity like Tesla, the pioneer American competitor, experts warn.

However, domestic production of battery cells, a key component of electric vehicles, will remain at the heart of the strategy. With its six major European battery factory projects with a capacity of 40 GWh each, and one in the United States, Volkswagen has created a dedicated entity ” PowerCo which can welcome foreign investors.