German auto group Volkswagen announced that it would go ahead this year with a highly-anticipated IPO of its premium sports brand Porsche.
The listing could be one of the biggest in German history and the largest in Europe since 1999, despite record inflation and an energy crisis.
What VW said about Porsche going public
The VW's board decided "to pursue an initial public offering of the preferred shares of Porsche AG with the target to list them on the regulated market of the Frankfurt Stock Exchange... at the end of September/beginning of October 2022," the group's statement said.
However, a decision on the Porsche IPO will be "subject to further capital market developments," Volkswagen said.
The auto giant officially signaled its intention to proceed with the IPO on February 24, the day Russia began invading Ukraine.
What the Porsche IPO would mean
The move would enable the Porsche and Piech families, which are the VW Group's main shareholders, a blocking minority in Porsche (25% plus one share), ensuring they can influence any key decisions.
Market investors would be given the opportunity to buy preferential shares that have no voting rights but receive an increased dividend.
Investors value Porsche between €60 billion ($60 billion) and €85 billion.