Porsche on DAX: Encourage IPO plans

Porsche on DAX: Encourage IPO plans


Rumors about the planned IPO valuation of VW’s sports car subsidiary Porsche AG temporarily boosted Volkswagen’s preferred shares and the papers of the group’s holding company Porsche SE. And the Porsche SE share continues to rise at the beginning of the week: With an increase of 1.5 percent, the share is not only one of the few winners in the DAX, but also by far the top winner of the day.

Bloomberg news agency, citing people familiar with the matter, reported that Porsche AG will be valued between 60 and 85 billion euros by the parties. Therefore, the IPO will be announced in the first week of September.

The total may be slightly higher than estimated by analysts. Under normal circumstances, industry experts expected Porsche AG to be valued between 80 and 100 billion euros. Given the current market environment, the valuation could be lower as well. Most of the time it was more like 80 billion or a little less. Because in the last few weeks, the assessment of the car industry as a whole left feathers due to the bad economic situation.

It was announced in February that Volkswagen was preparing for an IPO of Porsche in 2022. According to the agreement between Volkswagen and the family owners, the share capital of Porsche AG should be divided equally between preferred shares and ordinary shares. Up to 25 percent of the non-voting preference will be invested in the capital market, i.e. 12.5 percent of the total capital. Porsche Automobil Holding SE (PSE), where the Porsche and Piëch families own the majority of shares in Volkswagen, is to subscribe for 25 percent plus one share of common stock and thus receive a controlling minority.

Both Porsche and VW shares were recently under some pressure again after the bailout moves in the past few weeks. Now both names are going live again. However, DER AKTIONÄR remains confident about both values. From a long-term perspective, both stocks are trading at an attractive buy rate.

(With material from dpa-AFX)

Notice of conflicts of interest: The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related items that may benefit from the price promotion resulting from the publication: Porsche SE and Volkswagen.