Despite the volatile markets seen in 2022, Volkswagen AG is planning to list a minority stake in the sports car maker Porsche this year.
The plan is to list the shares in Frankfurt on the Frankfurt Stock Exchange, the largest of the seven stock exchanges in Germany, according to a Porsche press release on September 5.
This could well be the biggest European initial public offering (IPO) ever, depending on the interest of investors.
According to data released by Porsche, the IPO is planned for the end of September or the beginning of October, depending on the developments in broader capital markets.
Most successful sports car manufacturer
Oliver Blume, Chairman of the Executive Board of Porsche AG was adamant that this IPO would be a historic moment for Porsche.
“We very much welcome the decision of the Volkswagen Supervisory Board in favor of an IPO of Porsche AG. This is a historic moment for Porsche. We believe an IPO would open up a new chapter for us with increased independence as one of the world’s most successful sports car manufacturers. It would strengthen our ability to further execute our strategy.”
Moreover, the share capital of Porsche would be divided into 50% preferred shares and 50% ordinary shares according to the listing plans. Meanwhile, up to 25% of the preferred shares would be listed to support free float and create a liquid aftermarket for the Porsche AG shares.
In this regard, Lutz Meschke, the Deputy chairman of the executive board, said:
“We believe Porsche is well positioned and will continue to focus on high-quality and exclusive products, electromobility, and sustainability. Therefore, I am optimistic that we could attract a very strong and well-diversified shareholder base with the IPO.”
Finally, to sweeten the deal, there are plans to payout 50% of the Porsche Group consolidated profit after tax as a dividend to shareholders in the mid-term.
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