Volkswagen launches Porsche IPO plan

Volkswagen launches Porsche IPO plan

Posted on September 6, 2022, 8:53 AM

Volkswagen (VW) is dispelling the doubt surrounding Porsche’s IPO project. Despite market concerns over inflation and the energy crisis, the plan, which was launched on February 24, the day war broke out in Ukraine, was officially approved late Monday by the board of Volkswagen, the luxury car’s parent company. brand, with the approval of the management board.

According to the press release issued by the two authorities, the start of the IPO will be given “at the end of September or at the beginning of October” with the intention of “floating” part of the capital of Porsche, the introduction of the placement. practical public. The transaction should be completed by the end of the year.

According to Bloomberg, investors expect the luxury car brand to be valued between 60 billion and 85 billion euros. If the range is reached, it could be the biggest IPO in German history, and one of the biggest in Europe since 1999.

The founder of Red Bull is interested

Among the investors is Qatar, said the German car giant, adding that Doha has committed to take a 4.99 percent stake in the listed company. Bloomberg adds that US asset manager T. Rowe Pricet and billionaires, such as the founder of energy drink maker Red Bull, Dietrich Mateschitz, have also expressed interest.

Institutional investors will be able to subscribe “up to 25%” of the proposed shares, at an as yet unspecified price. They will also be offered to the general public in Germany, Austria, France, Italy, Spain and Switzerland, Porsche said in a separate press release.

At the same time, VW authorities approved the sale of “25% plus one share” of “ordinary” Porsche AG shares to the holding company Porsche SE, where the Porsche-Piëch family holds the full majority of voting rights. manufacturer. Thus, the Porsche-Piëch clan will hold a controlling minority in the family business.

Funding the electrification of Volkswagen

Porsche’s IPO should increase the stock market valuation of the parent company, which remains behind, by 85 billion euros, especially against North American rival Tesla which is worth almost ten times more. 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.

It is above all “a historic moment for Porsche”, declared Olivier Blume, the new boss of VW since September, until then the Chairman of the Board of Porsche and who remains so at present. With the listed unit on the stock market, Porsche will have “a lot of freedom” as it is one of the “world’s most successful sports car manufacturers”, he added.

Olivier Blume presented ambitious targets for Porsche in July, with operating profit relative to sales exceeding 20% ​​over the long term. To meet global demand for electric luxury cars, 80% of Porsche cars will be electric by 2030, Volkswagen’s new boss has promised.

With organizations