VW readies Porsche IPO for Q4

THE VOLKSWAGEN Group is set to make its initial public offering (IPO) of Porsche in the fourth quarter of this year. The group’s chief financial officer Arno Antiltz recently said that Porsche had proved resilient to recent market disruptions and it’s been estimated that the Zuffenhausen-based brand could list for a record-setting $US95 billion ($A138b).

GoAuto understands that the Volkswagen Group will leverage the funds to finance its shift towards electric vehicles. 

“There is still capital out there and there is a lot of scepticism about investing capital in technology companies (and) in new ventures. Porsche, on the other hand, is very stable,” Mr Antiltz said at the Future of Finance summit in Frankfurt this week.

Recent market volatility has seen the number of IPOs slow globally, with rising interest rates and ballooning inflation also playing roles in reducing the risk appetite of inventors. 

This week, automation firm ASEA Brown Boveri (better known as ABB) said it was postponing the $US750 million ($A1.04b) listing of its EV charging business until the market improves.

Analysts say Volkswagen Group is investing heavily in the development and production of EVs in a bid to catch-up to industry leader, Tesla. In Europe, Tesla plans to build up to 240 gigawatt-hours of cell-making capacity across six factories, prompting Volkswagen to take a similar path.

According to Automotive News Europe, Volkswagen remains open to listing its own battery units after financing the division internally and is inviting strategic partners, with Mr Antlitz saying the business has been set up in a way that facilitates its potential listing in 2023 or 2024.

“Everything is prepared for the ramp-up, but also for financing the ramp-up,” he explained.

In April, Mr Antlitz said that the funds from the IPO of Porsche AG could be utilised to bolster VAG’s finances, and to help fund the firm’s software- and battery production units, saying those companies who can “can map out their battery supply chain have the advantage of scaling in electromobility” and that a “Porsche IPO could give us a lot more flexibility in financing this”.

Porsche AG is controlled by parent company Volkswagen Group, which is the largest automotive company in Europe in terms of sales, and the second largest globally. In turn, Volkswagen is owned by holding company Porsche SE, which has a 31.4 per cent stake in the company and claims more than 50 per cent of its voting rights distribution.

Volkswagen Group has chosen Goldman Sachs, Citigroup, JP Morgan, Chase and Bank of America as underwriters for the IPO. Porsche AG is tipped to make its IPO on the Frankfurt Stock Exchange later this year.

And while it’s too early to confirm a share price for the business, Reuters reports that the parent company is expected to list around 25 per cent of Porsche AG stock in total, which has an approximate worth of $US23.8 billion ($A34.6b).