Now, Porsche AG is happy to note that Volkswagen AG has decided to offer up to 25 percent of the company's preferred shares, and that the process is expected to be completed by year-end. With that in mind, and subject to capital market conditions, the Porsche IPO is targeted for the end of September or the beginning of October.
The German company has prepared for the IPO by dividing its share capital into Preferred Shares and Ordinary Shares, with half of the former being available through the IPO. The goal is to create a liquid aftermarket for Porsche AG shares, while also supporting an increase in entrepreneurial independence from the brand.
At the end of this year, Porsche AG and Volkswagen AG will terminate their domination agreement, as well as the profit and loss transfer deal that is in place. The two companies will continue their joint synergies in the future, and their cooperation will be maintained.
The future strategic relationship between Porsche and Volkswagen will be managed through an industrial cooperation agreement, as Porsche describes it, which will be on “an arm's length basis.”
The IPO will be something to look forward to for Investors in Germany, Austria, France, Italy, Spain, and Switzerland. As usual with IPOs, private placements to institutional investments will also be available.