Luxury supercar brand Porsche has officially launched its listing plan.

On the evening of September 5, local time, global automobile giant Volkswagen AG announced that it would promote its sports car brand Porsche to be listed on the Frankfurt Stock Exchange in Germany, which is expected to be at the end of September or early October.

However, the Volkswagen Group emphasized that this also depends on the trends in the capital market.

If the listing is successful, it will be one of the world's largest IPOs in history.

According to Reuters, investors have valued the Porsche brand at 60 billion to 85 billion euros (approximately RMB 414.4 billion to 587.1 billion yuan).

This means that the IPO may raise more than 10 billion euros, and if a private sale is included, the amount raised will exceed 20 billion euros.

The British "Financial Times" said that based on a valuation of 85 billion euros, Porsche's IPO will eclipse Deutsche Telekom's US$13 billion listing in 1996, which was the largest IPO in Europe at the time.

According to previous reports by Bloomberg, according to the framework agreement reached by Volkswagen Group and Porsche Holdings in February, 25% of the preferred shares will be sold on the open market, equivalent to 12.5% ??of the total capital of the Porsche brand.

At the same time, the common shares held exclusively by Volkswagen and Porsche Holding will not be publicly listed.

Based on this calculation, this Porsche IPO will raise 10.625 billion euros (approximately RMB 73.4 billion).

Porsche Holdings will have more say. Porsche AG, which is about to IPO, is part of the Volkswagen Group and is responsible for the production and design of Porsche cars. It is headquartered in Stuttgart, Germany.

In addition to Porsche, the Volkswagen Group also owns Volkswagen, Audi, Bentley, Bugatti and other brands.

Volkswagen AG is a subsidiary of Porsche SE, which holds 31.4% of the Volkswagen Group's shares and 53.3% of the voting rights.

The full name of Porsche Holding is Porsche Automobil Holding SE (Porsche Automobile Holding Company), and its main shares are held by the Porsche and Piech families.

The Wall Street Journal stated that Porsche Holdings is an investment fund with almost no assets except Volkswagen, which it controls.

Porsche Holding once owned the Porsche car brand but lost direct control in a 2008 short squeeze that briefly made Volkswagen the world's most valuable company.

Porsche Holding has made it clear that it wants to take back the Porsche brand.

The Volkswagen Group stated in the announcement that during the preparation stage, the shares of the Porsche brand have been divided into 50% preferred shares (non-voting rights) and 50% common shares (with voting rights).

As part of the IPO, the Porsche brand will place up to 25% of preferred shares to Volkswagen Group investors.

At the same time, Porsche Holding will acquire 25% of the Porsche brand plus one ordinary share with voting rights at the placement price of the preferred shares plus a 7.5% premium.

This would give the Porsche-Pi?ch family (owners of Porsche Holding) a minority stake and veto power on strategic decisions.

Analysts believe that according to this agreement, Porsche Holdings will have greater influence on the Porsche brand in the future.

It is reported that Ferdinand Porsche, the ancestor of the Piech family, founded Porsche in 1931.

For years, Porsche AG has been trying to take full control of the Volkswagen Group and gain more say.

Analyst: It may be difficult for Porsche's market value to be converted into the share price of the Volkswagen Group. Analysts believe that the Volkswagen Group and Porsche Holdings have considerable differences regarding the Porsche IPO. Porsche Holdings is trying to seek more control, while the Volkswagen Group hopes to use this

Increase its stock price.

Volkswagen Group, whose shares have underperformed in European markets, hopes a listing of Porsche will boost its market value and fund its transition to electric vehicles.

However, analysts at investment bank Jefferies believe that "there is no guarantee that the market value of (Porsche) will be converted into the Volkswagen Group's share price unless the Volkswagen Group solves the structural problems of its brand/product complexity." Volkswagen Group's brands

The numerous and huge structures have been viewed by analysts as a drag on the group's market value.

In addition, some investors have questioned that this listing will be a test for Porsche's appeal amid the uncertainties caused by the escalating conflict between Russia and Ukraine.

Henrik Schmidt, a corporate management expert at public investor and asset management giant DWS, said: "It is becoming increasingly obvious that shareholder families are putting their interests first." However, the Porsche IPO has attracted the attention of many investors

.

Bloomberg reports that big-name investors including T. Rowe Price have expressed interest in subscribing within this valuation range.