Porsche AG - the famous manufacturer of the iconic 911 model goes public

Press Release: According to the company's website, these are 911 million shares of Porsche AG (in tribute to the most famous model from the conglomerate's production). The fund will be split 50/50, i.e. 455,5 million preferred shares and 455,5 million ordinary shares.

There are several notable innovations to note:

• Porsche SE (PAH3.DE) and Porsche AG, which are subject to the IPO, are not the same company. Porsche SE is already a listed company controlled by the Porsche-Piech family and is the largest shareholder of Volkswagen. Porsche AG is a manufacturer of sports cars and part of the Volkswagen Group, and it is its shares that are affected by the upcoming IPO.
• The IPO includes 25% non-voting preference shares. Half of this pool will be purchased by Porsche SE at a 7,5% premium over the IPO price. The remaining 12,5% ​​of the preference shares will be offered to investors.
• The manufacturer's preferred shares are to be offered to investors at a price in the range of EUR 76,5 to EUR 82,5.
• The common shares will not be listed and will remain in Volkswagen's hands, meaning that the car concern will remain the majority shareholder after Porsche AG goes public.
• Volkswagen Group ( VW.DE ) expects the company's valuation to reach 75 billion euros, which would give it an amount equivalent to nearly 80% of Volkswagen's valuation, Bloomberg reported.
• Common shares will have voting rights, while preferred shares will remain silent (non-voting). This means that those who invest after the IPO will hold shares in Porsche AG, but will not have an influence on how the company is run.
• Porsche AG will remain under significant control of both Volkswagen and Porsche SE. Porsche AG's free trading will include only a fraction of all shares, which will not offer any voting rights. This will make it difficult for any investor to build a significant stake in the company or push for change. A move of this type can reduce the risk of volatility caused by speculative movements of retail investors.

Why did Volkswagen decide to IPO Porsche?

Although Volkswagen is known around the world, the company consists of a number of brands that range from mid-range cars such as Škoda to premium brands such as Lamborghini, Ducati, Audi and Bentley. Of these brands, Porsche AG is one of the most successful, focusing on quality and serving the top of the market. Although Porsche accounted for only 3,5% of all deliveries made by Volkswagen in 2021, the brand generated 12% of the company's total revenue and 26% of its operating profit.

If you want to know more about this, you can watch the video Tomáš Vranka from XTB.