Volkswagen has given the green light for subsidiary Porsche to be listed on the stock exchange. The IPO could be one of the biggest in German history and the largest in Europe since 1999, despite record inflation and an energy crisis. According to the statement:
“The board has decided to pursue an initial public offering of the preferred shares of Porsche AG with the target to list them on the regulated market of the Frankfurt Stock Exchange… at the end of September/beginning of October 2022.”
However, VW added that a decision on the Porsche IPO will be “subject to further capital market developments,” Volkswagen said. According to sources, Volkswagen may extend the four-week period for buyers to express interest, or pull its plans altogether, should investors not show enough enthusiasm to make the move worthwhile.
The German auto giant officially signaled its intention to proceed with the IPO on February 24, the day Russia began invading Ukraine. The move would enable the Porsche and Piëch families, which are the VW Group’s main shareholders, a blocking minority in Porsche (25% plus one share), ensuring they can influence any key decisions.
Market investors would be given the opportunity to buy preferential shares that have no voting rights but receive an increased dividend. Investors value Porsche between €60 billion ($60 billion) and €85 billion. While the Porsche brand is strong, valuations of other luxury carmakers such as Aston Martin and Ferrari have fallen.
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