The chief financial officer of Volkswagen’s (ETR:VOW3) said on Monday ahead of a board meeting that Porsche’s potential stock market listing is central to funding carmaker’s electrification plans.
The long-awaited listing of Porsche will be discussed at a meeting of Volkswagen’s management and supervisory boards later on Monday to determine whether it should happen in late September or early October. In the event that Volkswagen announces its desire to float, a four-week period for investors to show interest in the shares would follow, during which the automaker might still yank the listing if demand is insufficient.
One person familiar with the discussions said of the impending choice at the meeting on Monday, “It would be the technical go-ahead, nothing more.” The stock market bell won’t necessarily ring in the end, but it is paving the way.
Some investors have questioned the timing of the transaction, arguing that market jitters may indicate far smaller proceeds than anticipated and bringing up unanswered concerns about Oliver Blume’s ability to effectively lead both Porsche and Volkswagen.
Luxury automobile manufacturers’ stocks have fallen precipitously this year, as have those of every other European business. After issuing a 575.8 million pound ($662.86 million) rights offer of four new shares for each existing share, Aston Martin’s (AML.L) stock fell 11% after falling 14% earlier.
Nevertheless, Arno Antlitz, who took over as COO and CFO of VW on September 1 when Blume was named CEO, reaffirmed Volkswagen’s defense of the IPO as essential to raise money for the automaker’s electrification aspirations.
In the interview, Antlitz added, “This is a significant aspect for the Group, especially because the potential revenues would offer us greater freedom to further accelerate the transition.”
Although two individuals familiar with the IPO said they did not anticipate a decision to take long, Porsche SE stated in a statement on Saturday that the launch was still pending additional board deliberations and market developments.
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