The Strategist

Porsche sets for IPO

09/07/2022 - 11:15

The luxury automobile maker Porsche will be listed on the stock exchange within the next month, the Volkswagen Group stated. Porsche shares should float on the Frankfurt Stock Exchange in late September or early October.

Porsche's initial public offering will be among the most expensive in recent memory. Analysts expect that the corporation will be worth roughly €85 billion.

In preparation for the IPO, Porsche's share capital was split in half, with 50% of the capital becoming common stock and the other 50% becoming non-voting preferred stock,. Investors will be presented with 25% of Porsche's preferred shares in a stock exchange offering.

The Porsche family's successors will receive 25% plus 1 common share of Volkswagen Group through the family holding Porsche SE. As a result, the family will be able to acquire a minority blocking share in the Volkswagen Group and have a say in important decisions about the growth of the German automaker.

Additionally, VW Group stated that dividend payments to shareholders will account for about half of the money raised from the Porsche IPO and sale of common shares to the Porsche family. The remaining sum will be used for business transformation and the switch to producing electric vehicles.