Volkswagen launches initial IPO plan for Porsche, defying market skepticism

Attendees look at the 2022 Porsche 718 Cayman GT4 RS during the 2021 Los Angeles Auto Show in Los Angeles, California, US, November 17, 2021. REUTERS/Ringo Chiu

HAMBURG / FRANKFURT, SEPTEMBER 5 (Reuters) – Volkswagen (VOWG_p.DE) On Monday, it announced its intention to launch the sports car brand Porsche, which could lead to the launch of what could become one of the world’s largest listed companies even as markets jittery over record inflation and an energy standoff between Russia and Europe.

The automaker posted a so-called intention to go public in late September or early October to be completed by the end of the year.

The move to list the shares in Frankfurt was announced after Volkswagen’s supervisory board gave the go-ahead late Monday. Read more

Investors expect a value of between 60 billion and 85 billion euros. Refinitiv data showed that at the end of estimates, the IPO could be the largest in German history and the largest in Europe since 1999.

Volkswagen said the IPO would be an important next step in the company’s transformation as it aims to become a leading provider of software-based mobility.

Volkswagen said Qatar will be an anchor investor intending to commit to a 4.99% stake in the newly listed company.

The intent to float included an offering to retail investors in countries in Europe including France, Spain and Italy, in an effort to cash in on Porsche’s loyal fan base.

Volkswagen agreed to a 25% plus one share of common stock in Porsche to sell to Porsche SE, as stipulated in a framework agreement between the parties in February. Read more

This gives the Porsche and Bich families, who control the Porsche SE, a dysfunctional minority – furthering their push for greater control under new CEO Oliver Blume.

Additional reporting by Paul Carrell, Victoria Waldrusy and Jan Schwartz. Emma Victoria Farr, Christoph Stitz, Ilona Weisenbach in Frankfurt Additional writing by Tom Sims; Editing by Matthew Lewis, Alistair Bell and Leslie Adler

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