Volkswagen to list Porsche IPO in coming weeks
Volkswagen in one of the biggest Initial Public Offerings in recent years and a key test of investor confidence as high inflation and the conflict in Ukraine have dampened the global economy, said on Monday that it will list its renowned sports car manufacturer Porsche AG.
The German carmaker announced its intention to list Porsche on the Frankfurt Stock Exchange by the end of September or the start of October, having previously stated that it was exploring the move as early as February.
Analyst estimates place the worth of Porsche at up to 85 billion euros, adding new funds to VW's coffers that officials claim would help the business finance its switch to electrified and self-driving cars. Investors will be able to buy preferred shares in Porsche, that do not carry voting rights.
VW announced that Porsche's stock has been divided into 50 percent ordinary shares and 50 percent nonvoting preferred stock in anticipation of the listing, confirming earlier remarks regarding the anticipated sale.
The German automaker plans to publically offer 25 percent of Porsche's preferred shares to private investors and list Porsche on the Frankfurt Stock Exchange. Porsche Automobil Holding, the family's holding company that owns the majority of Volkswagen, will purchase 25 percent plus one share of Porsche for the placing price of the common shares plus a premium of 7.5 percent above the preference price.
In the case of a successful IPO, 49 percent of the profits from the IPO and the private placement would be given to VW shareholders in the form of a special dividend, according to VW, which will continue to own the remaining shares of Porsche. According to VW, the dividend would probably be paid around the start of 2023.
The German car industry behemoth announced that it will immediately start meeting with individual investors to assess demand and choose a price for the shares, which may start trading by the end of the month.