Make a decision
In addition to offering investors shares to one of the most recognizable names in the auto industry, the initial public offering will return important decision-making power to the Porsche-Piech family, which lost control of the sports carmaker more than a decade ago after a period of time A long acquisition struggle with “Volkswagen”.
To satisfy the interests of the billionaire family, which owns 53% of the voting shares in Volkswagen through separately listed Porsche Automobil Holding SE, Porsche’s IPO is a complex IPO that has raised governance issues that reflect related ones. to the complex structure of “Volkswagen”.
Volkswagen excludes Deutsche Bank from leading one of Germany’s largest initial public offerings
Investors will be able to subscribe for 25% of Porsche’s preferred shares, which do not have voting rights. The family will purchase 25% plus one of Porsche’s common stock with voting rights, which means they will have an opposing and influential minority stake in future important decisions.
The family has agreed to pay a 7.5% premium over the preferred stock price range and plans to finance the acquisition with a mix of debt capital of up to € 7.9 billion and a special dividend paid by Volkswagen. .
The automaker says proceeds from the offering will help Volkswagen finance the transition to an industry electric car and investments in software.
Despite growing interest in the IPO, some investors have said that the appointment of Porsche CEO Oliver Blume as head of Volkswagen and his plan to continue serving in a dual role raise doubts about Porsche’s future independence.
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