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Possible Porsche IPO Could Put Carmaker In Family Hands Report Says

Possible Porsche IPO Could Put Carmaker In Family Hands, Report Says

June 01, 2021 at 04:06AM
by PYMNTS

The Porsche and Piech families, which are in control of the largest Volkswagen shareholder, are ready to take a direct stake in Porsche AG, U.S. News reported.

If Porsche AG is going to be listed separately in a possible initial public offering (IPO), the move would make the families’ grip on the Volkswagen empire less tight, according to U.S. News. There hasn’t been a decision yet on whether to list Porsche separately. That move also may not happen.

But if it happens, it would signify the families’ direct ownership of Porsche AG, which was founded by Ferdinand Porsche in the early 1930s, U.S. News reported.

The valuation of Porsche AG could range from around 45 billion euros to 90 billion euros (about $55 billion to $110 billion), the report stated. The valuation of Volkswagen could be around 135 billion euros (about $165 billion).

There probably won’t be an IPO for Porsche at this time, according to U.S. News, due to the complex stakeholder setup at Volkswagen, which was created meticulously in the wake of the failed takeover of Volkswagen by Porsche in 2009. That led to Volkswagen buying Porsche and the two families becoming the most well-known investors in Volkswagen.

Today, the families hold all of the ordinary shares of Porsche and own over half the rights to vote, along with a 31.4 percent equity stake in Volkswagen, U.S. News reported.

One of the ways for the families to get direct ownership of the namesake brand, while keeping activist investors out, would be selling some voter rights to co-shareholder Lower Saxony, which has a 20 percent voting stake, according to the report.

In other news, Porsche drivers in Australia can now access new parking options, like being guided to available parking, gaining entry to parking and making contactless payments for parking, via vehicle touchscreens and the vehicle maker’s smart parking app.