The Porsche is supposedly set to make its debut by the end of this month or early October. As the German automaker mulls over the Porsche IPO, Volkswagen AG’s finance chief Arno Antlitz said it is part of the company’s key strategy.
“The possible proceeds would give us more flexibility to further accelerate the transformation,” Antlitz said in an interview published on VW’s intranet Monday. “Things are progressing according to plan.” The company’s board is set to meet on September 6 to decide how to proceed with the initial public offering of 25% of Porsche’s nonvoting preferred shares.
The Porsche IPO – A New Beginning
Arno Antlitz, was appointed VW chief operating officer alongside his role as CFO on September 1 when Oliver Blume became CEO. He admitted that preparing for the Porsche IPO was a key part of his role, especially in recent months. “This is a key element for the Group, especially because the possible proceeds would give us more flexibility to further accelerate the transformation,” Antlitz said in the interview. “However, a decision has not yet been made.”
The automaker’s supervisory and management boards are set to decide on the Porsche IPO date, as markets fluctuate due to an unstable geopolitical climate. Stocks across Europe have been in a free-fall and have left investors worried as a volatile market offers no consolation. Recently, Europe revealed that it is battling an energy crisis that has severely affected industry and commerce.
People familiar with the matter told Bloomberg News that the company has managed to promote Porsche IPO investment and raise the valuation to almost as much as $85 billion. Industry analysts are of the opinion that the listing could value Porsche at anywhere between $60 billion and $85 billion. Although the Porsche IPO date has not been revealed, people in the know expect the company to announce its decision by early September.
Is it worth buying into the Porsche IPO?
The world-renowned carmaker has successfully convinced prospective investors that the Porsche IPO investment is worth every penny, securing pre-orders that exceed the shares on offer. Investors like T Rowe Price Group Inc and Qatar Investment Authority are reportedly eyeing a share. The premium carmaker has drawn the interest of Red Bull founder Dietrich Mateschitz, as well as LVMH Chairman Bernard Arnault. However, some investors expressed their doubts at the timing of the move, as a volatile market beset by ever-rising inflation could lead to a lesser-than-expected valuation and cause losses. This could prevent some from buying Porsche IPO.
The Porsche IPO will be one of the biggest public offerings in Europe in years. Porsche SE is an investment fund majority owned by the family of the brand’s founder, while Porsche AG is the car maker itself. Volkswagen’s decision to float only non voting stocks has drawn the ire of some investors who have questioned the reasoning behind the move. The simmering anger could make it difficult to garner top value for the IPO. An investment professional commented that the offering is about securing the family’s position as an anchor shareholder at Porsche, so that it can raise funds without relinquishing control. In 2012, Volkswagen acquired Porsche AG, making the family the biggest shareholder in VW.
Blume’s dual role has also raised concerns and ruffled some feathers as he continues to retain his old role as Porsche chief. An investor poll conducted by Bernstein Research, at the end of July, showed that 71% of respondents thought Blume’s double role would have a negative impact on the Porsche IPO as it could lead to a conflict of interest.
Meanwhile, Antlitz mentioned that the Porsche IPO will give the company sufficient capital to move ahead with its electrifying plans and “more entrepreneurial independence” in financing its transformation.
