Ukraine conflict could affect timing of Porsche IPO

A framework agreement includes listing up to 25% of the car maker's preferred stock

Volkswagen aims to conduct the Porsche IPO in the fourth quarter of this year. EPA

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Top Volkswagen shareholder Porsche Automobil Holding supports plans to list luxury sports car maker Porsche but the conflict in Ukraine could affect the timing of the proposed initial public offering, the holding company said on Tuesday.

Volkswagen aims to conduct the Porsche IPO in the fourth quarter of 2022, though that may change if the conflict in Ukraine drags on, Porsche Automobil Holding's finance chief said.

"We cannot rule out, if the conflict lasts a longer time, that this could have potential implications on the listing," Johannes Lattwein told a news conference, without elaborating on how it would affect plans.

No final decision has been made on the proposed IPO, the company said.

A framework agreement for the listing proposed by Volkswagen in February includes selling 25 per cent plus 1 ordinary share in the car maker to Porsche Automobil Holding as well as listing up to 25 per cent of Porsche's preferred stock.

Some 49 per cent of the IPO proceeds would be paid out to Volkswagen's shareholders as a special dividend.

"Porsche Automobil Holding thereby supports the plans of Volkswagen to expand its financial flexibility and accelerate the technological transformation of the group," it said in a statement reporting its annual results.

We cannot rule out, if the conflict lasts a longer time, that this could have potential implications on the listing

Johannes Lattwein,
chief financial officer of Porsche Automobil Holding

"Due to the leading positioning of Porsche in the sport and luxury segment, this attractive investment would diversify our portfolio and our dividend inflows," Mr Lattwein said.

Porsche Automobil Holding, which is controlled by the Porsche and Piech families and holds a 31.4 per cent equity stake in Volkswagen, has no plans to reduce its stake in the German car maker, Hans Poetsch, chief executive of the company and chairman of VW’s supervisory board, said.

The IPO would also not affect the composition of the Volkswagen supervisory board.

Porsche Automobil Holding reported a 2021 group result after tax of €4.6 billion ($5.06bn). It forecast group results after tax in 2022 at between €4.1bn and €6.1bn, not including the impact of the possible Porsche IPO.