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September 6, 2022

Volkswagen greenlights Porsche IPO

Porsche listing planned for later in the year, though final timing subject to market conditions

By David Leggett

VW Group’s board and supervisory board has said the company will seek to pursue an initial public offering (IPO) on the Frankfurt Stock Exchange at the end of September or early October – to be completed by the end of the year.

The move would enable the Porsche and Piëch families, which are the VW Group’s main shareholders, to have a blocking minority in Porsche (25% plus one share), ensuring they can influence any key decisions after the IPO.

Market investors would be given the opportunity to buy preferential shares that have no voting rights but receive an increased dividend.

Volkswagen AG would continue to hold Porsche AG in its consolidated financial statements by way of full consolidation even after implementation of the intended IPO.

VW also said the existing industrial and strategic cooperation between Volkswagen AG and Porsche AG would be comprehensively continued after the IPO.

In the event of a successful IPO, Volkswagen AG will convene an extraordinary general meeting in December 2022 at which it will propose to its shareholders that a special dividend amounting to 49% of the total gross proceeds from the placement of the preferred shares and the sale of the ordinary shares be distributed to the shareholders at the beginning of 2023.

VW Group is also preparing to list or partially sell its battery division and the Porsche IPO would assist in such a restructure.

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