Volkswagen advises on the stock market listing of Porsche By Reuters on Monday
©Reuters. FILE PHOTO: Attendees view the 2022 Porsche 718 Cayman GT4 RS during the 2021 LA Auto Show in Los Angeles, California, United States, on November 17, 2021. REUTERS/Ringo Chiu/File Photo
By Victoria Waldersee
BERLIN (Reuters) – Volkswagen’s board of management and supervisory board will meet on Monday to discuss whether the long-awaited IPO of sports car brand Porsche should take place in late September or early October, the carmaker said on Saturday.
A decision will also be made as to whether Volkswagen (ETR:) agrees to the sale of 25% plus one ordinary share in Porsche AG to Porsche SE, as stipulated in a framework agreement between the two parties in February.
That would give the Porsche and Piech families, who control Porsche SE, a blocking minority – a move that would strengthen their quest for greater control over the automaker founded by their ancestor Ferdinand Porsche in 1931.
Porsche SE, which owns 31.4% of Volkswagen and 53.3% of the voting rights, confirmed Monday’s meeting in a separate statement, adding that the start of the listing is still dependent on market developments and further board discussions.
Under the framework deal https://www.reuters.com/business/autos-transportation/volkswagen-top-shareholder-strike-framework-deal-porsche-ipo-2022-02-24/ in February, 25% of the preference reached shares sold on the open market, representing only 12.5% of Porsche’s total capital.
Even that could fetch up to 10.6 billion euros ($10.55 billion) if the brand’s valuation hits the high end of investor estimates at around 85 billion euros, according to Reuters calculations.
This would make the list one of the largest in German history and the largest in Europe since then Enel (BIT:) SpA in 1999, according to data from Refinitiv.
Ordinary shares, which under the plans would be owned exclusively by Volkswagen and Porsche SE, would not be listed.
Some investors have questioned the timing of an IPO that would test the appeal of Europe’s largest automaker at a time when valuations of leading companies have shrunk amid wartime instability and energy costs are soaring to record highs.
“It is becoming increasingly clear that the interests of the shareholder families come first,” says Henrik Schmidt, governance expert at Volkswagen investor DWS.
($1 = 1.0049 euros)