Estimates value the automaker between 60 and 85 billion Euro
If market conditions are not favourable, VW Group could still backtrack
The current plans call for the Porsche and Piech family to have a blocking minority
Many automakers have chosen to enter the stock market in the last two years and Porsche could be the next to do so.
The Volkswagen Group announced it will allow the Porsche brand to make its initial public offering in late September or early October.
This IPO could be the largest in Europe since 1999 and one of the largest in German history since the automaker is currently valued between 60 and 85 billion euros.
This is somewhat less than the VW Group hoped to raise, but it is still a good valuation considering the current state of the stock market and the decline in value experienced by other European luxury car makers in the last few months.
The money raised by selling shares will allow Porsche to keep expanding its electric vehicle portfolio and its software offering.
Since the global economy is less stable than usual at the moment, the VW Group said it could decide to expand the period for buyers to show interest and if not enough shares are forecast to be sold, it could cancel the whole IPO.
The current plans include preferential shares being offered to buyers in Europe, notably in France, Italy, and Spain in order to make it easier for Porsche fans to acquire shares of the company. Qatar will also play a big role in the company’s IPO since its investors are likely to buy 4.99% of the total shares.
In addition, about 25% of the shares will be split between the Porsche and Piech families in order to give them a blocking minority and thus more control over the future of the automaker.
Many believe that both families’ desire for a greater presence in Porsche is the actual reason why the automaker decided to go public despite the market being in a position that is far from ideal.