Volkswagen gave the go-ahead for the IPO of the sports car subsidiary Porsche on Monday evening. With the consent of the supervisory board, the executive board decided to aim for an IPO for the preferred shares of Porsche AG and for their listing on the regulated market of the Frankfurt Stock Exchange. However, it is not yet clear when that will happen.
Volkswagen gave the end of September/beginning of October as the date, but made this subject to further developments on the capital market. Volkswagen thus gave the go-ahead to start one of the largest IPOs in Europe in recent years. This means that VW can now advertise to investors to buy the shares. Up to 25 percent of the non-voting preferred shares – that is 12.5 percent of the share capital – of Porsche AG are to be placed on the stock market in the next few weeks. It usually takes around four weeks from the official announcement to the initial listing. In the event of a successful IPO, Volkswagen intends to invite shareholders to an extraordinary general meeting in December 2022 to receive a special dividend of 49 percent of the total proceeds from the placement of the preferred shares and the sale of ordinary shares to shareholders in early 2023. Experts warn of the IPO Whether the IPO, worth billions, will ultimately be realized despite the turbulence on the financial markets depends on whether and at what price investors are willing to buy Porsche shares . Critics warn Volkswagen against an IPO in uncertain times. Investors then often keep their money together. However, Volkswagen is likely to have already reached agreements with major investors to secure the placement. According to financial circles, VW and Porsche are aiming for a valuation of 60 to 80 billion euros, the sale of preferred shares would bring in 7.5 to 10 billion euros. Porsche / Piëch should regain influence The major shareholder of the Wolfsburg car group, the family holding company Porsche SE, also wants 25 percent plus one share of the voting ordinary shares in the earnings pearl Porsche AG. For this, Porsche SE is to pay 7.5 percent more than the issue price of the preferred shares. The cheaper these are sold, the less the owner families Porsche and Piëch would have to pay. With the transaction, they would regain direct access to Porsche AG, which they lost to Volkswagen after the takeover battle ten years ago. After the IPO, Volkswagen would hold 75 percent minus one share in the total capital of Porsche AG. Porsche has long been considered a pearl of the multi-brand group Volkswagen. The operational business with models such as the 911, Cayenne, Macan, Panamera and Taycan is bundled in Porsche AG. PSE, which is controlled by the Porsche and Piëch families, holds most of the voting rights in Volkswagen.
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