Volkswagen Triggers Landmark Porsche IPO Plan, Defying Market Doubts

Volkswagen Triggers Landmark Porsche IPO Plan, Defying Market Doubts

By Jan Schwartz and Emma-Victoria Farr

HAMBURG/FRANKFURT (Reuters) -Volkswagen on Monday announced its intention to float sports car brand Porsche, triggering what could become one of the world’s largest listings even as markets jitter over record inflation and a Russia-Europe energy standoff.

The carmaker published a so-called intention to float for an initial public offering in late September or early October to be completed by the end of the year.

The move to list shares in Frankfurt was announced after VW’s supervisory board gave the go-ahead late on Monday.

Investors expect a valuation between 60 billion and 85 billion euros. At the high end of estimates, the IPO could be the largest in German history and the biggest in Europe since 1999, Refinitiv data showed.

Volkswagen said an IPO would be a significant next step in the transformation of the company as it aims to become a leading provider of software-based mobility.

Qatar will be a cornerstone investor intending to commit to a 4.99% stake in the newly listed company, Volkswagen said.

The intention to float included an offering to retail investors in countries in Europe including France, Spain and Italy, an attempt to tap into Porsche’s loyal fan base.

Volkswagen approved a 25% plus one share of ordinary shares in Porsche AG to be sold to Porsche SE, as laid out in a framework agreement by the two parties in February.

This gives the Porsche and Piech families, who control Porsche SE, a blocking minority – bolstering their push for greater control under new Chief Executive Oliver Blume.

(Reporting by Paul Carrel, Victoria Waldersee, Jan Schwartz; Emma-Victoria Farr, Christoph Steitz, Ilona Wissenbach in FrankfurtAdditional writing by Tom Sims; Editing by Matthew Lewis, Alistair Bell and Leslie Adler)