Volkswagen AG is preparing an initial public offering of Porsche, seeking a listing of its most profitable asset to help boost the parent’s valuation and fund the push into electric vehicles.
Under a plan code-named “Phoenix,” the carmaker and Porsche Automobil Holding SE, the billionaire Porsche and Piech family’s main investment vehicle, have sketched out a framework that navigates VW’s convoluted structure.
Investors could be offered about 25% of non-voting shares in the iconic sportscar maker while the family buys a minority blocking stake, according to people familiar with the deliberations.
The tentative listing, estimated to value the sportscar brand at as much as 85 billion euros ($96 billion) by Bloomberg Intelligence, would partly reverse a tumultuous takeover of Porsche more than a decade ago and signals the extent of the upheaval sweeping the industry.
While details and timing remain in flux, the IPO could happen in the second half of this year and might include a special dividend to help the Porsche and Piech family, who own 53% of VW voting shares, finance the transaction, said the people, who spoke on condition of anonymity.
A spokesman for VW declined to comment. The company’s preferred shares surged as much as 10% after the announcement Tuesday on a possible IPO outline.
Governance Tension
Going ahead will require walking a tightrope between key shareholders that own almost all of the group’s voting stock and external investors under VW’s complex governance structure.
The owner family, the German state of Lower Saxony and Qatar together control about 90% of voting rights.
The tension would likely continue at a new listed company under the current plan.
While external investors will own only non-voting shares, the Porsche and Piech owners will retain far-reaching influence through 25% of common stock with voting rights plus one share, according to two people familiar with the plans.
Keyword: VW is preparing to list Porsche