Volkswagen to go ahead with Porsche IPO, seeking to defy market gloom

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German car maker planning initial public offering by end of September or start of October

Investors will be able to purchase preferred shares in Porsche that don’t carry voting rights, with the Porsche and Piech families set to retain a blocking minority stake of 25% plus one share.Volkswagen on Monday decided to push ahead with its plan to list a minority stake in the Porsche sports car maker this year despite gyrating markets, paving the way for what could be one of Europe’s biggest initial public offerings.

“This is a historic moment for Porsche,” VW and Porsche chief executive officer Oliver Blume said. “We believe that an IPO would open a new chapter with greater independence for us as one of the world’s most successful sports car manufacturers. While more sway over Porsche is on the cards for the family, VW hopes to yield funds that will help bolster its ambitious investment plans in electric models and groundbreaking new digital features. The plan is contending with some of the most challenging market conditions in years where a slowing economy, rampant inflation and surging energy costs have largely brought public listings to a standstill.

Even as markets gyrate, Porsche has lined up investor interest for its IPO at a valuation of as much as €85 billion euros, people familiar with the matter told Bloomberg News last month. The maker of the 911 sportscar and the electric Taycan has secured pre-orders that exceed the shares on offer at a valuation between €60 billion and €85 billion, said the people, who asked not to be identified as the discussions are private.

 

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