German carmaker Volkswagen has announced plans to list the Porsche sports car brand on the stock market, despite high inflation and the energy war between Russia and Europe.
Investors expect Porsche’s market value to be estimated at between 60 and 85 billion euros.
The initial public offering (IPO) of Porsche shares could be among the largest in German history and the largest in Europe since 1999, according to Refinitiv’s top estimates.
Qatar is set to be the lead investor and intends to commit to buying a 4.99 percent stake in the company.
There are also plans to offer preferred shares to retail investors in several European countries, including France, Spain and Italy, to tap into Porsche’s loyal fan base.
Volkswagen also approved the sale of 25 percent of Porsche AG to Porsche SE, meaning the Porsche and Piech families will secure a controlling minority stake in the company.
Sources close to the negotiations also said that Volkswagen may give potential buyers more than the planned four weeks to express interest in buying Porsche shares, but also that it may abandon the IPO if investors do not show enough enthusiasm.
“It would only be a technical green light, nothing more. It paves the way (for an IPO), but it doesn’t guarantee that the stock market bell will ring at the bottom,” one of the sources said.
Volkswagen said the IPO would be an important step in the company’s transformation as it aims to develop its software and electric vehicle offerings.
The insistence on listing amid market turmoil is only in the interests of the Porsche and Piech families and their desire for greater control, according to Volkswagen management expert Hendrik Schmidt.
“Market conditions are currently very unfavorable,” said Deka Investment’s head of sustainability and corporate governance Ingo Speich, declining to say whether his company would buy the Porsche stake.
The German Automobile Association expects four percent fewer cars delivered in Europe this year, which would mean delaying the eagerly awaited recovery from the pandemic crisis.