Volkswagen launches Porsche IPO plan

Posted Sep 6, 2022, 8:53 AM

Volkswagen (VW) removes the doubt surrounding Porsche’s IPO project. Despite market concerns over record inflation and the energy crisis, the deal, which was unveiled on Feb. 24, the day war broke out in Ukraine, was officially approved Monday evening by the board. of Volkswagen, parent company of the high-end car brand, with the approval of the supervisory 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 the beginning of October » with the intention of « floating » part of the capital of Porsche, a prelude to the placement public of actions. The transaction should be finalized by the end of the year.

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

Red Bull founder interested

Among the investors is Qatar, said the German car giant, adding that Doha had committed to take a 4.99% 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 shown interest.

Institutional investors will be able to subscribe “up to 25%” of the preferred 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 authorities approved the sale of “25% plus one share” of “ordinary” Porsche AG shares to the Porsche SE holding company, through which the Porsche-Piëch family holds an absolute majority of voting rights. in the German manufacturer. Thus, the Porsche-Piëch clan will hold a blocking minority in the family business.

Financing Volkswagen’s electric shift

The Porsche IPO should 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 North American competitor Tesla which is worth almost ten times more . 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 above all « a historic moment for Porsche », declared Olivier Blume, new boss of VW since 1er September, 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 the « most successful sports car manufacturers in the world », he added.

Olivier Blume presented ambitious objectives for Porsche in July, with operating profitability in relation to sales exceeding 20% ​​over the long term. To meet global demand for electrified luxury vehicles, 80% of Porsche vehicles will be fully electric by 2030, the new Volkswagen boss has promised.

With agencies

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