Porsche, the stock exchange listing in the fourth quarter 2022. First details on the terms

Porsche’s stock market debut could happen through an IPO already in the fourth quarter of 2022, at least so he says Arno Antlitz, Chief Financial Officer of the Volkswagen Group. We recall that a few days ago, the Volkswagen Group and its main shareholder, Porsche SE, had declared that they had entered into a framework agreement on the debut of the Porsche brand on the stock exchange. The feasibility of the transaction, however, will depend on a number of factors including market conditions.

With the outbreak of war between Russia and Ukraine which has led to a strong instability of the stock markets, it is difficult for the Volkswagen Group to decide to start the process of listing Porsche in the short term. This explains why Arno Antlitz probably spoke generically about the fourth quarter of 2022.

In any case, from a purely financial point of view, the plan provides for the share capital of Porsche AG to be divided into two: 50% of ordinary shares with voting rights and 50% of preferred shares without voting rights. Up to 25% of the preferred stock will be placed on the market as part of the IPO. Porsche Automobil Holding, owned by the Porsche and Piëch families, would get 25% plus one share of the common stock, thus giving families the opportunity to have a say in the automaker’s strategic decisions.

The Volkswagen Group will continue to hold the majority of the German brand. Relationships, therefore, at the industrial level will not change. However, there are still several details missing from this operation that will probably arrive over the next few months, including share prices.

However, Bloomberg Intelligence estimates that the operation could have a valuation of up to 85 billion euros. As part of Porsche’s public listing plan, the Volkswagen Group will offer its approximately 130,000 employees a one-off bonus of 2,000 euros. The listing would allow to give greater value to the German brand, allowing its faster growth. Furthermore, the operation will guarantee the German group new resources to be used in its ambitious electrification plan which is, as we know, also very expensive.