Porsche will go public by the end of 2022

The manufacturer of the 911 will go public by the end of 2022. The Volkswagen group, owner of Porsche, made the announcement on September 5, 2022. Investors have already come forward.

Investors like the boss of Red Bull, Dietrich Mateschitz, and that of LVMH, Bernard Arnault, would like to enter the capital of Porsche.

Announced several months ago, Porsche’s IPO has been confirmed by the German group. Volkswagen’s board of directorsdecided today, with the approval of the Supervisory Board« , to list the shares of its subsidiary Porsche AG »subject to further developments on the capital market« with a view to »implement by the end of the year« , according to a press release from the two bodies that met during the day.

The start of the IPO will be given « late September or early October« with the intention of »float« (« intention to float ») part of the capital of Porsche, a prelude to the public placement of shares. The German manufacturer had unveiled its project on February 24, 2022, the first day of the invasion by the Russian army of Ukraine .

The economic shocks that followed, particularly on the stock markets, had cast doubt on the timing of this IPO. But the manufacturer of the mythical 911 has always aroused the greed of investors, who value the Zuffenhausen company, near Stuttgart, between 60 and 85 billion euros, according to Bloomberg.

International investors including the American T Rowe Price Group, and the sovereign investment fund of the emirate of Qatar, have already expressed their interest in subscribing to the operation, alongside billionaires such as the founder of the energy drink manufacturer. Red Bull, Dietrich Mateschitzas well as the Chairman of LVMH, Bernard Arnaultaccording to the agency.

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Porsche is currently wholly owned by the Volkswagen Group. This in turn is controlled by a financial holding company, named Porsche SE, through which the family Porsche-Piech holds an absolute majority of voting rights (approximately 54%). The German region of Lower Saxony is also a direct shareholder of Volkswagen, up to 20%, thus being able to exert its influence there.

This construction now prevents the Porsche-Piëch family, majority shareholder of the Porsche holding company, from exercising a significant influence on the Volkswagen group and therefore on the Porsche nugget. Porsche’s capital was divided into 50% preference shares, offering a reinforced but non-voting dividend, and 50% ordinary shares with voting rights. Institutional investors will be able to subscribe « up to 25% » preferential shares, for an as yet undetermined 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 bodies approved the sale of « 25% plus one share » actions « ordinary » from Porsche AG to the Porsche SE holding company. Thus the Porsche-Piëch clan will hold a blocking minority in the family business launched by the engineer Porsche ferry after the Second World War.

« A historic moment for Porsche »

This IPO of Porsche should also give a boost to the stock market valuation of the parent company, which remains behind at some 85 billion euros, in particular against the big competitor Tesla which is worth roughly ten times more.

Read also : Porsche’s IPO will « accelerate » Volkswagen’s electric shift

By giving up a fraction of its control over Porsche, Volkswagen will obtain the billions needed to finance its investments in the electric, connected and autonomous car. It is especially « a historic moment for Porsche« , said the new boss of Volkswagen since September 1, Oliver Blume, until then Chairman of the Board of Porsche and who remains so for the moment. Partly listed on the stock exchange, Porsche will have « greater independence« by being one of »world’s most successful sports car manufacturers« , he added.

Oliver Blume presented ambitious goals for Porsche in July, with operating profitability to sales exceeding 20% ​​over the long term. The manufacturer of the electric Taycan plans to launch a new all-electric SUV model. To meet the global demand for electrified luxury vehicles, 80% of the car manufacturer’s vehicles will be fully electric by 2030, its president has promised. (with AFP)

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