Porsche IPO May Be Stalled Over Russo-Ukrainian War

Matt Posky
by Matt Posky
porsche ipo may be stalled over russo ukrainian war

Despite news that Volkswagen Group’s largest shareholder is eager to list the Porsche brand, rumors are swirling that the plan might be delayed over the conflict in Eastern Europe. VW and Porsche SE have openly shared their desire to launch the initial public offering (IPO) in the fourth quarter of 2022. However Porsche Automobil Holding SE’s finance head has suggested it might not be prudent if Russia is still occupying parts of Ukraine.

“We cannot rule out, if the conflict lasts a longer time, that this could have potential implications on the listing,” CFO Johannes Lattwein recently explained during a press conference held in Berlin, adding that no formal decisions have yet been made.

Porsche SE is controlled by the Porsche and Piech families representing some of Germany’s oldest automotive dynasties. Currently, it’s holding a 31.4-percent equity stake in Volkswagen with little chance of it dumping shares. But listing the sports-luxury brand is assumed to result in a sudden influx of investment capital without forcing anybody to rejigger the management structure of VW Group.

“Due to the leading positioning of Porsche AG in the sport and luxury segment, this attractive investment would diversify our portfolio and our dividend inflows,” Lattwein was quoted as saying by Reuters.

From Reuters:

A framework agreement for the listing proposed by Volkswagen in February includes selling 25 [percent] plus 1 ordinary share in the carmaker to Porsche SE as well as listing up to 25 [percent] of Porsche AG’s preferred stock.

Some 49 [percent] of the IPO proceeds would be paid out to Volkswagen’s shareholders as a special dividend.

“Porsche SE thereby supports the plans of Volkswagen AG to expand its financial flexibility and accelerate the technological transformation of the group,” Porsche SE said in a statement reporting its annual results.

My guess is that leadership is worried that a prolonged conflict in Ukraine will only worsen the state of the market, suppressing prospective investments into a high-end automotive brand. Porsche SE doesn’t seem interested if the listing isn’t looking like a sure-fire success. But that’s speculation on our part, as nobody working within VW Group seems ready to give any benchmarks for what it might take to cancel a late-2022 IPO.

[Image: Tishomir/Shutterstock]

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  • La834 La834 on Mar 30, 2022

    > " Porsche SE doesn’t seem interested if the listing isn’t looking like a sure-fire success." An IPO is never a sure-fire success.

  • Ol Shel Ol Shel on Apr 03, 2022

    Porsche cars will be much better when their priority is shareholder returns. Everything is.

  • Sayahh Is it 1974 or 1794? The article is inconsistent.
  • Laura I just buy a Hyndai Elantra SEL, and My car started to have issues with the AC dont work the air sometimes is really hot and later cold and also I heard a noice in the engine so I went to the dealer for the first service and explain what was hapenning to the AC they told me that the car was getting hot because the vent is not working I didnt know that the car was getting hot because it doesnt show nothing no sign no beep nothing I was surprise and also I notice that it needed engine oil, I think that something is wrong with this car because is a model 23 and I just got it on April only 5 months use. is this normal ? Also my daughter bought the same model and she went for a trip and the car also got hot and it didnt show up in the system she called them and they said to take the car to the dealer for a check up I think that if the cars are new they shouldnt be having this problems.
  • JamesGarfield What charging network does the Polestar use?
  • JamesGarfield Re: Getting away from union plantsAbout a dozen years or so ago, Caterpillar built a huge new engine plant, just down the road here in Seguin TX. Story has it, Caterpillar came to Seguin City council in advance, and told them their plans. Then they asked for no advanced publicity from Seguin, until announcement day. This new plant was gonna be a non-union replacement for a couple of union plants in IL and SC, and Cat didn't want to stir up union problems until the plan was set. They told Seguin, If you about blab this in advance, we'll walk. Well, Seguin kept quiet as instructed, and the plan went through, with all the usual expected tax abatements given.Plant construction began, but the Caterpillar name was conspicuously absent from anywhere on the site. Instead, the plant was described as being a collective of various contractors and suppliers for Caterpillar. Which in fact, it was. Then comes the day, with the big new plant fully operationa!, that Caterpillar comes in and announces, Hey, Yeah it's our plant, and the Caterpillar name boldly goes up on the front. All you contractor folks, welcome aboard, you're now Caterpillar employees. Then, Cat turns and announces they are closing those two union plants immediately, and will be transporting all the heavy manufacturing equipment to Seguin. None of the union workers, just the equipment. And today, the Caterpillar plant sits out there, humming away happily, making engines for the industry and good paying jobs for us. I'd call that a winner.
  • Stuki Moi What Subaru taketh away in costs, dealers will no doubt add right back in adjustments.... Fat chance Subaru will offer a sufficient supply of them.