Volkswagen AG’s finance chief Arno Antlitz said the planned listing of the Porsche sportscar brand, set to be one of Europe’s biggest initial public offerings ever, is a “key element” for the German industrial giant’s strategy.
(Bloomberg) — Volkswagen AG’s finance chief Arno Antlitz said the planned listing of the Porsche sportscar brand, set to be one of Europe’s biggest initial public offerings ever, is a “key element” for the German industrial giant’s strategy.
“The possible proceeds would give us more flexibility to further accelerate the transformation,” Antlitz said in an interview published on VW’s intranet Monday. “Things are progressing according to plan.”
The carmaker’s management and supervisory boards will discuss Monday if an initial public offering of the iconic brand at the end of September or early October should go ahead in increasingly troubled global markets. A slowing economy, rampant inflation and surging energy costs have largely brought public listings to a standstill.
Despite the turmoil, Porsche has lined up investor interest for its IPO at a valuation of as much as $85 billion, people familiar with the matter told Bloomberg News last month. The maker of the 911 sportscar and the electric Taycan has secured pre-orders that exceed the shares on offer at a valuation between 60 billion and 85 billion euros ($85 billion), said the people, who asked not to be identified because discussions are private.
Big-name investors including T Rowe Price Group Inc. and Qatar Investment Authority have already indicated interest in subscribing to the IPO in that valuation range, the people said. Porsche has also been gaging interest from billionaires including the founder of energy drink maker Red Bull, Dietrich Mateschitz, as well as LVMH Chairman Bernard Arnault, according to the people.
While a listing of Porsche would help direct funds to VW’s ambitious plans on rolling out electric cars and software investments, the IPO is up against some of the worst market conditions in years. VW officially started preparation for a listing of its most prized asset in February, just before Russia’s invasion of Ukraine roiled markets and triggered an energy crisis.
On Monday, the euro slid to a two-decade low after Russia escalated the continent’s energy woes by shutting off key gas taps, signaling more pressure from spiraling energy costs.
Antlitz has taken on the additional role of chief operating officer following Porsche chief Oliver Blume becoming VW chief executive officer this month after the ouster of Herbert Diess.
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