Volkswagen and its majority shareholder Porsche Automobil Holding said they’ll continue to explore an initial public offering of the German manufacturer’s Porsche sports car brand.
A listing could happen in the fourth quarter at the earliest, VW CEO Arno Antlitz said on Friday. The plan comes on the heels of Russia’s invasion of Ukraine, which has sparked volatility across world markets and concerns of higher energy prices.
“The feasibility of an IPO depends on several parameters and general market conditions,” VW said late on Thursday. “No final decisions have yet been taken.”
Europe’s biggest automaker this week said it mapped out a framework for a possible deal and was in advanced talks about an IPO of the group’s most profitable division. An offering would lift the group’s valuation and help fund its shift towards electric cars. The planned listing, estimated to value Porsche at up to 85bn euros (roughly R1.45 trillion) by Bloomberg Intelligence, would partly reverse a tumultuous takeover of the Stuttgart-based company more than a decade ago.
“The appeal of owning a direct stake in Porsche almost guarantees success,” Jefferies analyst Philippe Houchois wrote in a note. The IPO’s terms, still subject to approval, also “raise governance concerns”.
VW’s preference shares rose as much as 4.5% in Frankfurt.
Listing Details
VW revealed details of the possible listing on Thursday. The brand’s share capital would be split 50% between preferred shares, which don’t carry voting rights, and 50% common shares with voting rights.
Up to 25% of the preferred shares could be sold on the capital market and Porsche Automobil Holding, the main investment vehicle of the Porsche and Piech billionaire owner family, would acquire 25% plus one share of the ordinary shares. This would give the family a blocking minority on strategic decisions.
Volkswagen will propose the distribution of a special dividend in case of a successful IPO amounting to 49% of the total gross proceeds. This would help the Porsche and Piech families to finance their acquisition of the direct stake in what used to be their family enterprise.
A Porsche IPO would be a “very important structural step” and will make VW more agile and robust, CEO Herbert Diess said on Friday.
More stories like this are available on bloomberg.com
VW keeps Porsche IPO on table amid market volatility
Image: Bloomberg
Volkswagen and its majority shareholder Porsche Automobil Holding said they’ll continue to explore an initial public offering of the German manufacturer’s Porsche sports car brand.
A listing could happen in the fourth quarter at the earliest, VW CEO Arno Antlitz said on Friday. The plan comes on the heels of Russia’s invasion of Ukraine, which has sparked volatility across world markets and concerns of higher energy prices.
“The feasibility of an IPO depends on several parameters and general market conditions,” VW said late on Thursday. “No final decisions have yet been taken.”
Europe’s biggest automaker this week said it mapped out a framework for a possible deal and was in advanced talks about an IPO of the group’s most profitable division. An offering would lift the group’s valuation and help fund its shift towards electric cars. The planned listing, estimated to value Porsche at up to 85bn euros (roughly R1.45 trillion) by Bloomberg Intelligence, would partly reverse a tumultuous takeover of the Stuttgart-based company more than a decade ago.
“The appeal of owning a direct stake in Porsche almost guarantees success,” Jefferies analyst Philippe Houchois wrote in a note. The IPO’s terms, still subject to approval, also “raise governance concerns”.
VW’s preference shares rose as much as 4.5% in Frankfurt.
Listing Details
VW revealed details of the possible listing on Thursday. The brand’s share capital would be split 50% between preferred shares, which don’t carry voting rights, and 50% common shares with voting rights.
Up to 25% of the preferred shares could be sold on the capital market and Porsche Automobil Holding, the main investment vehicle of the Porsche and Piech billionaire owner family, would acquire 25% plus one share of the ordinary shares. This would give the family a blocking minority on strategic decisions.
Volkswagen will propose the distribution of a special dividend in case of a successful IPO amounting to 49% of the total gross proceeds. This would help the Porsche and Piech families to finance their acquisition of the direct stake in what used to be their family enterprise.
A Porsche IPO would be a “very important structural step” and will make VW more agile and robust, CEO Herbert Diess said on Friday.
More stories like this are available on bloomberg.com
MORE:
Ship happens: you lost your Lambo on a burning boat — now what?
SA's used-car buyers will soon be able to avoid write-off ‘death traps’
Aston Martin sales rev up on higher prices, more profitable cars
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos