Porsche’s plan is to make an initial public offering of up to 25% of the non-voting preferred shares. The preferred shares are scheduled to be listed on the Regulated Market of the Frankfurt Stock Exchange. The initial public offering is scheduled for late September or early October and is expected to be completed by the end of the year.
In order to prepare for this IPO, the share capital of Porsche AG was divided into 50% preferred shares and 50% common shares. The roadmap of the automobile company is to take 25% of the preferred shares on the stock market, while 25% plus one share of the ordinary shares will be sold to Porsche SE, which is the holding company that controls 53.3% of the group. VW. The holding company will pay for it the listing price with which it opens on the market plus a premium of 7.5%. It is expected to be one of the largest IPOs of the year and one of the largest IPOs in European history.
In turn, Volkswagen will continue to have majority control over the Porsche brand and will include it in its financial results. The sports car manufacturer also plans a dividend of 49% of the income generated by this operation. Porsche also wants to reach retail investors through public offerings in Germany, Austria, France, Italy, Spain and Switzerland by leaving a part of the non-voting preferred shares that it will take public. Institutional investors that have already shown interest in Porsche shares include Qatar’s sovereign wealth fund, the Qatar Investment Authority.
Porsche’s objective with this IPO is to finance the development and innovation of its electric vehicles and have an attractive financial performance at a time of rising interest rates in the eurozone. The development of its electric cars could involve an investment of 52,000 million euros until 2030 and an additional 30,000 million in the development of software for new models.
“This is a historic moment for Porsche. We believe that an IPO would open a new chapter for us with greater independence as one of the world’s most successful sports car manufacturers,” said Porsche and Volkswagen CEO Oliver Blume.
Banco Santander is one of the banks chosen by Porsche as a joint financial intermediary together with other entities such as BNP Paribas, Deutsche Bank, Morgan Stanley, Barclays, Société Générale and UniCredit.
In the first half of 2022, Porsche again posted strong growth in revenue, operating profit and sales performance. For the full year 2022, the company is targeting group revenues in the range of approximately €38-39 billion and a return on sales in the range of 17% to 18%.
Car companies show significant falls
Beyond the macroeconomic situation marked by high inflation, the economic slowdown and the more than likely recession, the war between Ukraine and Russia and the high prices of natural gas, the sector is not experiencing its best moment on the stock market and is experiencing significant declines in the last exercises. More ‘generous’ has been the market with disruptive companies such as Tesla, Rivian Auto, Lucid Group, the Chinese Li Auto or Nio in recent years, although this 2022 they also correct.
Of the automobile companies with the longest tradition in the market, the one that is left the least this year is Renault, which falls by 10%, followed by Volkswagen with 18%, BMW with 19.96%, Stellantis with 25.4% and Mercedes-Benz Group 29.9%. The Americans Ford Motor (-30.4%) and General Motors (-37.15%) are not spared either and are starring in a real disaster this year on Wall Street.