Porsche will be listed on the stock exchange before the end of 2022, Volkswagen decides

This is one of the biggest courses ever in Europe despite markets on slippery slopes.

The world’s second-largest car group Volkswagen gave the go-ahead on Monday night to list its subsidiary Porsche on the stock exchange in one of the biggest IPOs ever in Europe, despite markets on slippery slopes. Volkswagen’s board of directorsdecided today with the approval of the board“, to list the shares of its subsidiary Porsche AG”depending on further developments on the capital market“in order”implemented before the end of the year“, According to a press release from the two agencies that met during the day.

Kick-off for the IPO will be givenend of September or beginning of October“with the intention of”flow“(“intention to flow“) part of Porsche’s capital, a prelude to the public placement of the shares. The German manufacturer unveiled its project last winter, precisely on February 24, the first day of the Russian army’s invasion of Ukraine. The financial shocks that followed , especially in the stock markets, had cast doubt on the timing of this “IPO– the IPO of Porsche.

But the manufacturer of the mythical 911 has always aroused the greed of investors, who value the Zuffenhausen company, near Stuttgart (southwest), 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, along with billionaires such as the founder of the producer of energy drinks. Red Bull, Dietrich Mateschitz, as well as the president of LVMH, Bernard Arnault, according to the agency.

Influence of the Porsche-Piech clan

Porsche is currently fully owned by the Volkswagen Group. This is in turn controlled by a financial holding company, called Porsche SE, through which the Porsche-Piëch family has an absolute majority of the voting rights (about 54%). The German region of Lower Saxony is also a direct shareholder in Volkswagen, up to 20%, and can thus exercise its influence there.

This construction prevents the former Porsche-Piëch family, majority shareholder in the Porsche holding company, from exercising a significant influence on the Volkswagen Group and therefore on the Porsche block. Porsche’s capital was divided into 50% preference shares, which provided a boosted but non-voting dividend, and 50% ordinary shares with voting rights.

Institutional investors will be able to subscribeup to 25%» preference shares at a price not yet determined. They will also be offered to the public in Germany, Austria, France, Italy, Spain and Switzerland, Porsche said in a separate press release.

At the same time, the authorities in VW approved the sale of “25% plus a share“actions”ordinaryfrom Porsche AG to Porsche SE Holding. The Porsche-Piech clan will thus have a blocking minority in the family business, which the engineer Ferry Porsche launched after the Second World War.

Electric turning

L”IPOof Porsche should also boost the stock market valuation of the parent company, which remains at about 85 billion euros, especially against the big competitor Tesla, which is worth about ten times more. By giving up a fraction of its control over Porsche, Volkswagen will gain the billions needed to finance its investments in the electric, connected and autonomous car.

It’s especially”a historic moment for Porsche“Said the new head of Volkswagen since September 1, Oliver Blume, until then chairman of Porsche’s board of directors and who remains so at the moment. Partially listed Porsche will havegreater independence“by being one of”the world’s most successful sports car manufacturers“, he added.

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

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