Volkswagen gives green light to Porsche IPO

Volkswagen gives green light to Porsche IPO

Volkswagen today gave the green light to go public with its luxury brand Porsche. Volkswagen “decided today, with the approval of the Supervisory Board”, to list the shares of its Porsche subsidiary “under the reform of the capital market”; listing on the stock market is expected “until the end of the year”, according to information from two decision-making bodies of the German group.

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The German manufacturer presented its design on February 24, 2021, coinciding with the first day of the Russian invasion of Ukraine. The economic collapse due to the offensive, especially on the stock market, has cast doubt on the IPO schedule of the luxury sports car brand.

The company, located in Zuffenhausen, near Stuttgart (south-west), is worth between 60,000 and 85,000 million euros or dollars, according to Bloomberg.

Porsche is currently 100% owned by Volkswagen, which in turn is controlled by the Porsche finance company, in which the Porsche-Piëch family holds the largest number of voting rights (about 54%).

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The capital of Porsche was divided in two. On the one hand, 50% will be non-voting preferred shares, while the other 50% will be common shares.

In the coming weeks, market investors will be offered the possibility to subscribe “up to 25%” of the proposed shares, at a price not yet determined.

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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 gradually increase its control over the family business.

By giving up some of its control to Porsche, Volkswagen will be able to raise the billions needed to finance its investments in electric, connected and autonomous vehicles.