According to the Financial Times, not a single European bank will be involved in the operation as German powerhouse Deutsche Bank was overlooked and neither Barclays nor BNP Paribas were required.
In their place, Volkswagen has brought in US financial strength in the form of Goldman Sachs, Citi, Bank of America and JP Morgan as global coordinators of the IPO.
Porsche’s IPO saga has taken several turns since the luxury car group was bought by its compatriot eight years ago. It looked set to continue into 2022, but the war in Ukraine may have thwarted that plan.
In its recent press conference, the Wolfsburg-based company said that no final decision had been made on the date of the IPO, although most industry analysts still see a fourth-quarter 2022 launch as likely.
“We cannot rule out that a longer-lasting conflict could have possible effects on the stock market listing,” said Johannes Lattwein, CFO of Porsche SE, at the end of March, without going into detail about the possible effects.
Volkswagen has hired Goldman Sachs, Citi, Bank of America and JP Morgan to coordinate Porsche’s IPO
Should Ukraine not put the brakes on an IPO in 2022, the IPO of Porsche AG promises to be historic when it comes to the sums raised. Volkswagen’s current market cap, hovering around the $100 billion mark, is nowhere near in the same league as Tesla’s $1 trillion valuation.
With the IPO of Porsche, the company should shift up a gear. A big windfall is on the horizon as the IPO is expected to solidify Porsche’s value at around $95 billion to $100 billion.
electrical feeling
Volkswagen will need every penny to cover the costs of funding the development and manufacture of electric, autonomous and connected vehicles. The company has already invested tens of billions of euros in its electric vehicle program and aims to reach the milestone of 50% of total electric vehicle sales by 2030.
Doubts over the timing of the launch, however, come after production at the flagship Wolfsburg plant fell by almost half in 2021 due to global semiconductor shortages.
And speaking of IPOs in general, there were just 321 globally in the first quarter of 2022, down 37% from the same period last year, according to EY, with amounts rising to $54 billion from $82 billion .
Despite ongoing market volatility, Volkswagen has been preparing the groundwork for an upcoming IPO since February, together with its main shareholder Porsche SE. The manufacturer of the legendary 911 sports car, which is 100% owned by Volkswagen, is itself controlled by the family holding company Porsche-Piëch, which holds a majority stake in Volkswagen (53.3%).
Porsche SE will assume a blocking majority of 25% plus one share when the company is listed. Around 49% of the proceeds from Porsche’s IPO will be distributed to Volkswagen shareholders in the form of a special dividend.
The Q4 2022 finish line is in sight, it remains to be seen if Porsche can cross it.
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