Volkswagen Drives Toward Porsche IPO

Volkswagen and its top shareholder have prepared a preliminary agreement to list Porsche to help boost the parent’s valuation and fund the company’s push into electric vehicles.

Under a plan code-named “Phoenix,” the automaker and Porsche Automobile Holding SE, the Porsche and Piech family’s main investment vehicle, have created a framework that would offer investors about 25% of non-voting shares in Porsche maker while the family buys a minority blocking stake.

The tentative Porsche listing, which Bloomberg Intelligence values at about $96 billion, would partly reverse the takeover of Porsche over a decade ago. 

Company insiders, who spoke on the condition of anonymity, expect the IPO to happen in the second half of 2022 and suggest it might include a special dividend to help the Porsche and Piech family finance the transaction. The Porsche and Piech family holds 53% of the shares currently.

While external investors will own only non-voting shares, the Porsche and Piech owners will retain great influence through 25% of common stock with voting rights plus one share, according to a source familiar with the plans.

Europe’s biggest carmaker has pushed for some time to adopt a less centralized corporate structure to become more nimble. 

Volkswagen’s management and supervisory boards still must sign off on the framework agreement with Porsche SE, the carmaker said.