Volkswagen (VOWG_p.DE) on Monday, September 5th, announced its intention to float the luxury sports car brand Porsche, setting off what could become one of the world’s most extensive listings even with record inflation and a Russia-Europe energy standoff that has sent European stocks plunging. The carmaker published an intention to float for an initial public offering in late September or early October, which will be completed by the end of the year but added that the listing and timing were ‘subject to further capital market developments.’
Sources close to the negotiations said earlier on Monday that Volkswagen may extend the four-week period for buyers to express interest or to pull its plans altogether, should investors not show enough enthusiasm. “It would be the technical go-ahead, nothing more,” one of the sources said. “It’s paving the way, but this would not guarantee that the stock market bell will ring in the end.”
Investors forecast a valuation between 60 to 85 billion euros. While the Porsche brand is compelling, valuations of other luxury carmakers such as Ferrari and Aston Martin have tumbled. At the high end of estimates, the IPO could be among the biggest in German history and the largest in Europe since 1999, Refinitiv data revealed. Qatar will be a cornerstone investor intending to commit to a 4.99% stake in the newly listed stock.
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