Porsche IPO Moves Forward Despite Market Risks

Volkswagen (VLKAF) The high-performance automaker first began considering a spin-off in February, just as Russia’s invasion of Ukraine shocked investors.

In a statement late Monday, Volkswagen said it had decided to go ahead with its initial public offering at the end of this month or early October “subject to further capital market developments”.

Up to 12.5% ​​of Porsche will be offered to investors in the form of preferred shares. Nearly half of the proceeds from a “successful IPO” will be distributed to Volkswagen shareholders in the form of a special dividend, the company added.

Volkswagen also said it plans to use the proceeds from the IPO to bolster its efforts to build more. Electric carThe company plans to put €89 billion ($88.4 billion) into EV development over the next five years, about half of its then planned spending. The company wants EVs to make up a quarter of his sales by the end of 2026.
Reuters reports that initial public offering could value Porsche up to €85 billion ($84.4 billion), Volkswagen could raise more than €10.5 billion ($10.4 billion). It will be one of Europe’s largest IPOs, according to Dealogic data.

Large listings will continue despite fears of a recession, rising energy prices in Europe and uncertainty about the central bank’s plans to curb inflation roil markets. This has delayed most deals as companies wait for greater certainty before pursuing mergers or public offerings.

A change in Volkswagen’s management has added to the uncertainty surrounding the listing. Oliver Blume pulled the reins as chief executive of the German auto giant this month after Herbert Diess stepped down. kicked out of work in july.

Source: www.cnn.com

Leave a Reply

Your email address will not be published.