The IPO of Porsche will offer up to 25 percent of the Preferred Shares of Porsche AG, and the listing will be made on the Frankfurt Stock Exchange's Regulated Market (Prime Standard). Many were wondering when this will happen, but we now have an official timeline.
There has been much speculation regarding the moment when Porsche's IPO will take place, and some have attempted to illegally offer shares ahead of market flotation. Porsche itself warned the German Finance Ministry of the practice months ago and noted that the offers themselves do not originate from Porsche AG, Volkswagen AG, or any of their subsidiaries.
Now, Porsche AG is happy to note that Volkswagen AG has decided to offer up to 25 percent of the company's preferred shares, and that the process is expected to be completed by year-end. With that in mind, and subject to capital market conditions, the Porsche IPO is targeted for the end of September or the beginning of October.
The German company has prepared for the IPO by dividing its share capital into Preferred Shares and Ordinary Shares, with half of the former being available through the IPO. The goal is to create a liquid aftermarket for Porsche AG shares, while also supporting an increase in entrepreneurial independence from the brand.
At the end of this year, Porsche AG and Volkswagen AG will terminate their domination agreement, as well as the profit and loss transfer deal that is in place. The two companies will continue their joint synergies in the future, and their cooperation will be maintained.
The future strategic relationship between Porsche and Volkswagen will be managed through an industrial cooperation agreement, as Porsche describes it, which will be on “an arm's length basis.”
The IPO will be something to look forward to for Investors in Germany, Austria, France, Italy, Spain, and Switzerland. As usual with IPOs, private placements to institutional investments will also be available.