Potential Porsche IPO detailed by Volkswagen AG - ECSEI
Monday, September 26, 2022
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Potential Porsche IPO detailed by Volkswagen AG

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Porsche is chasing “increased independence as one of the world’s most successful sports car manufacturers” with an Initial Public Offering (IPO).

The Supervisory Board of Volkswagen AG has confirmed it will offer up to 25 per cent of non-voting preferred shares in Porsche, with an IPO date of late September or early October.

If it is to IPO, Porsche will follow in the footsteps of Ferrari (listed in 2015) and Polestar (listed earlier this year).

Reuters reports the listing could be valued at between €60 billion and €80b (A$87b to A$127b), which could make it the largest in Europe since 1999.

The Porsche-Piech family – through Porsche Automobil Holding SE – will acquire 25 per cent plus one of Porsche’s ordinary voting stock, giving the Porsche-Piech clan a blocking minority stake in their namesake marque.

The plan includes public offerings in Germany, Austria, France, Italy, Spain, and Switzerland, backed by private offerings to certain investors.

Porsche has split its share capital to feature 50 per cent ‘preferred’ and 50 per cent ‘ordinary’ shares. Up to 25 per cent of the preferred shares (or 12.5 per cent of Porsche overall) will be listed in the IPO to “support a meaningful free float and help create a liquid aftermarket for the Porsche AG shares”.

“We very much welcome the decision of the Volkswagen Supervisory Board in favour of an IPO of Porsche AG,” said Oliver Blume, chairman of the executive board of Porsche AG, arguing it “would strengthen our ability to further execute our strategy”.

Porsche says the IPO is designed to “unleash its full potential” by leveraging its:

  • “Iconic brand and racing heritage”
  • “Structural growth environment”
  • “Superior customer experience”
  • “Innovative battery electric vehicle technologies”
  • “Commitment to sustainable luxury”
  • “People-centric performance culture”
  • “Compelling financial performance”

It will spell the end of the current profit and loss agreement transfer agreement between Volkswagen AG and Porsche, but won’t represent the end of their “successful cooperation”.

Porsche is aiming for more than 80 per cent of its delivered cars in 2030 to be BEVs. It also hopes to have a net carbon neutral value chain in 2030.

The German automaker is anticipating its future customers will be younger and come from more diverse backgrounds. It’s also expecting the proportion of female customers to increase.