Volkswagen has given the green light on Monday evening for the IPO of sports car subsidiary Porsche. With the approval of the Supervisory Board, the Executive Board has decided to pursue an IPO for the preference 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 has specified the end of September/beginning of October as the date, but subject to further developments on the capital market.
With this, Volkswagen gave the green light to tackle one of the largest IPOs in Europe in recent years. This means VW can now advertise for investors to buy the shares. Up to 25 percent of the non-voting preference shares – that is 12.5 percent of the share capital – of Porsche AG will be listed on the stock exchange in the coming weeks. It usually takes about four weeks from the official announcement to the first offer.
In the event of a successful IPO, Volkswagen plans to invite shareholders to an extraordinary general meeting in December 2022 to vote on a special dividend of 49 percent of the total proceeds from the placement of preference shares and the sale of common shares to shareholders early 2023.
Experts warn against disclosure
Whether the multi-billion IPO will ultimately be realized despite the turbulence in 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 often keep their money together. However, it is likely that Volkswagen has already entered into 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, with the sale of the preferred shares yielding 7.5 to 10 billion.
Porsche/Piëch to regain influence
The major shareholder of the Wolfsburg car group, the family holding company Porsche SE, also wants to acquire 25 percent plus one share of the voting common shares in the profit pearl Porsche AG. For this, Porsche SE has to pay 7.5 percent more than the issue price of the preference shares. The cheaper these are sold, the less the owner families Porsche and Piëch would have to pay. The transaction would give them direct access to Porsche AG, which they lost to Volkswagen ten years ago after the takeover battle. After the IPO, Volkswagen would hold 75 percent minus one share of the total capital of Porsche AG.
Porsche has long been considered a jewel of profitability in the multi-brand group Volkswagen. The operational matters with models such as the 911, Cayenne, Macan, Panamera and Taycan are bundled in Porsche AG. PSE, which is owned by the Porsche and Piëch families, has most of the voting rights in Volkswagen.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
