Porsche IPO Plan

[porsche tech]

Wall Street Journal today:

[GH85Carrera]

I always thought Porsche should sell a pretty stock certificate, suitable for hanging on the wall. An actual share of the company. The families have always had control of the company. Little car maker, Porsche was THE most profitable car company on the planet for many years. The accumulated so much money they tried to buy VW group. Once word got out the stock price of VW went way up and Porsche was leveraged with stock options. They could not pay the options, and had to sell Porsche, bu they did own 51% of VW group by then. So they basically bought themselves.

I guess now they want to make Porsche AG independent and not part of the group. Interesting.

[Flat Six]

I heard about this on one of the business news channels; IIRC VW wants to IPO Porsche but retain 75% ownership. Don't know anything about IPOs, really, but would make sense to me as a way to build cash while retaining control.

[svandamme]

Originally Posted by GH85Carrera

I guess now they want to make Porsche AG independent and not part of the group. Interesting.

I doubt that is the goal, if that was the goal, the family could buy more PAG shares outright without IPO, remember they have controlling votes of VAG.. so if they decide VAG needs to do something they vote it.

If anything this looks like some kind of vehicle to extract money out for the family, so cash money out


The entire chip/covid market has been a bit weak, and this could get them surplus cash
For no real loss of control, let somebody else share the risk of the current market and EV conversion complications

[Superman]

Originally Posted by Flat Six

I heard about this on one of the business news channels; IIRC VW wants to IPO Porsche but retain 75% ownership. Don't know anything about IPOs, really, but would make sense to me as a way to build cash while retaining control.

That's right. It creates an immediate cash infusion. It also increases the company's debt limit moving forward. The cash can be used to pursue new business opportunities now, and the increased debt ceiling can help fund future business opportunities.

[svandamme]

ultimately it's Porsche SE that has the control over what VAG does with the cash

It could be used to pay out to VAG shareholders, which is 30something % for holding SE
And then they might use that to buy more VAG shares and increase control even more.

They have 20% shares they don't own but have voting rights for, from my understanding that is Emirates money they called in to help them with their particular problem back when they tried to buy VAG outright.
I suspect that 20% has strings attached where they can buy it back whenever they want/can

the 20% owner first gets the VAG payout
then gets payed for what % SE wants to buy back to increase its stake in VAG