Day: September 19, 2022

Berlin, Volkswagen (VOWG_p.DE) shares hovered around breakeven on Monday, reflecting a mixed response from investors to the automaker’s listing plans for sports car brand Porsche AG in what could be Europe’s third biggest initial public offering.

Volkswagen said on Sunday it was aiming for a valuation of 70 billion-75 billion euros ($70-75 billion) for Porsche AG, slightly below some estimates of up to 85 billion euros, but far outstripping the 49-billion-euro price tag for rival BMW (BMWG.DE) and Mercedes-Benz’s (MBGn.DE) 61 billion euros, Reuters reported.

Porsche AG aims to win over investors with its track record of success and high margins, even as shares of other luxury carmakers like Ferrari (RACE.MI) and Aston Martin (ASTON.UL) have suffered this year in the tumult on European stock markets.

But the structure of the listing, in which Volkswagen’s largest shareholder – Porsche SE (PSHG_p.DE) – will receive a blocking minority of 25% plus one of the voting ordinary shares, has sparked criticism from some fund managers.

The IPO will list 25% of preferred shares, which do not have voting rights, meaning stock market investors will own just 12.5% of Porsche AG’s capital and have little say.

Nonetheless, the listing has attracted cornerstone investors including Qatar Investment Authority, which is buying 4.99% of the offering; Abu Dhabi’s ADQ, which is investing 350 million euros; as well as T. Rowe Price (TROW.O) and Norway’s sovereign wealth fund, investing 750 million euros each.

“Our starting point is that we always want to be able to vote,” said Carine Smith Ihenacho, chief governance and compliance officer at the Norwegian fund.

“We do, however, own shares in a number of companies where shareholder rights are weaker than we would like… voting rights are not the only way to exert influence though,” Smith Ihenacho added in a statement to Reuters.

Shares in Volkswagen, which some analysts have said could unlock value for its own stock by listing Porsche AG, were little changed at 1405 GMT, after rising 3% in premarket trade.

Uncertainties around the governance of the two companies – which will both be led by Volkswagen CEO Oliver Blume – could explain the lack of enthusiasm from markets, Ingo Speich, head of sustainability and corporate governance at top-20 Volkswagen investor Deka Investment, said.

“If the splitting off of two companies improves the management quality and strategic direction of a business, that will be reflected in the valuation,” Speich said. “It is fundamentally right that Porsche AG becomes more independent – but this is not an independent set-up.”

Volkswagen’s valuation for Porsche AG is close to its own market capitalisation of 88 billion euros.

Shares in Porsche SE, which is controlled by Germany’s Porsche and Piech families, were up 2.6% in afternoon trade.

While the IPO could still be pulled before trading starts on Sept. 29, Porsche AG’s Chief Financial Officer Lutz Meschke said in early September this would only happen in the event of new “severe geopolitical problems”.

Volkswagen said on Sunday it would price Porsche AG’s preferred shares at 76.50-82.50 euros per share.

A prospectus with further details of the listing is expected to be published on Monday afternoon.

“Investors are queuing up. If the Porsche IPO goes well, one could imagine placing other parts [of Volkswagen] such as Audi on the stock exchange,” auto expert Arndt Ellinghorst of data analytics firm QuantCo said.

Analysts have compared Porsche AG stock to Ferrari, which has a market capitalisation of 38 billion euros but an operating margin of 24% to Porsche’s 17-18%. The German carmaker is targeting a 20% margin and is far ahead in electric vehicles.

The subscription period for private and institutional investors is expected to run from Sept. 20 to Sept. 28, with shares offered to private investors in Germany, Austria, Switzerland, France, Italy and Spain.

Total proceeds from the sale will be 18.1-19.5 billion euros and could help Volkswagen fund its electrification drive.

Source: Bahrain News Agency

The Ministry of Commerce and Industry, in cooperation with the International Football Association (FIFA) and the Supreme Committee for Delivery & Legacy, organized today a workshop for the judicial officers of National Committee for Intellectual Property Right Protection during the FIFA World Cup Qatar 2022.

Continuing until Tuesday, September 20, 2022, the workshop has seen the participation of about 90 staff members from the Ministry of Commerce and Industry, the Ministry of Interior, and the Ministry of Municipality.

The training in question forms part of the Ministry’s efforts, in coordination with other relevant ministries and government agencies, to implement measures to host the FIFA World Cup Qatar 2022, in accordance with the highest pertaining international practices, as well as to support intellectual property rights and provide the necessary protection for major international brands.  The workshop touches on ways to instil fair competition, prevent illegal abuses such as unauthorized promotional activities, combat the sale of counterfeit goods, or FIFA World Cup Qatar 2022 products without obtaining the approval of the concerned authorities, and curb the unauthorized use of FIFA and FIFA World Cup Qatar 2022 trademarks and designs.

The workshop also addresses many vital topics, including the tasks of judicial officers in the vicinity of stadiums during the period of holding matches, ways to protect trademarks and intellectual property rights of FIFA and tournament sponsors, as well as means to protect World Cup designs and the rights of companies that have been licensed to sell World Cup products. Additionally, the workshop features highlighting the pertaining laws and regulations, such as Law No. (10) of 2021 regarding the Measures for Hosting FIFA World Cup Qatar 2022.

Moreover, the workshop discusses ways to protect the rights of joint stock companies, mechanisms for determining officially licensed products, and a review of the trademark protection program in stadiums during the tournament period.

Source: Ministry of Commerce and Industry

DOHA, Qatar – Under the patronage of His Excellency Mr. Jassim Bin Saif Al-Sulaiti, Minister of Transport. Qatar Airways will host the biggest gathering of the aviation industry’s financial leaders since before the start of the COVID-19 pandemic. Following the hugely successful IATA Annual General Meeting (AGM) and World Air Transport Summit (WATS) held in Doha last June, the most attended AGM in the Middle East in history, the IATA World Financial Symposium (WFS) will take place on 19-22 September 2022.

As the industry comes out of the greatest financial shock on record, numbers indicate a rapid emergence from the pandemic following the removal of government-mandated travel restrictions over the past two years. Industry losses are expected to fall to $9.7 billion this year, improved from nearly $180 billion in losses over the previous two years (2020-21). As travel barriers fall in most regions, a recent surge in demand suggests a recovery to pre-COVID-19 traffic levels in 2024, with a possibility of reaching profit in 2023.

At the same time, airline debts have soared as carriers borrowed to stay afloat during the crisis. Finance departments across the industry will face major challenges as the goal to fly net zero by 2050 approaches.

Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker said: “We are honoured to be hosting the first in-person World Financial Symposium since 2019, especially during our milestone year, celebrating 25 years of operations. This vital symposium will bring together financial leaders from airlines and from our many supply chain partners to discuss and debate the path forward and the challenges to be overcome.”

Willie Walsh, IATA’s Director General, said, “We are excited to bring the World Financial Symposium to Doha for the first time. As the industry continues to recover, the role of finance in rebuilding balance sheets and supporting our sustainability agenda will take center stage in the important discussions taking place over the next few days.”

A highlight of the WFS Opening Plenary will be an onstage discussion with H.E Mr. Akbar Al Baker and Mr. Willie Walsh on the theme of the industry’s future.

Sessions will address:

ESG & sustainable finance trends

Achieving carbon net zero by 2050

Financial risk management

The road to airline retailing & customer centricity

Fulfillment and settlement in a world of airline offers and orders

The future of airline payments and payments as a value creator

Understanding and preparing for OECD BEPS 2.0

WFS will also feature a a review of the industry economic outlook and resilience from IATA’s Chief Economist, Marie Owens Thomsen.

Earlier in June 2022, Qatar Airways hosted over 1,000 delegates and aviation leaders from across the globe at the industry’s biggest annual event, the 78th International Air Transport Association (IATA) Annual General Meeting and World Air Transport Summit (WATS).

A multiple award-winning airline, Qatar Airways was announced as the ‘Airline of the Year’ at the 2021 World Airline Awards, managed by the international air transport rating organisation, Skytrax. It was also named ‘World’s Best Business Class’, ‘World’s Best Business Class Airline Lounge’, ‘World’s Best Business Class Airline Seat’, ‘World’s Best Business Class Onboard Catering’ and ‘Best Airline in the Middle East’. The airline continues to stand alone at the top of the industry having won the main prize for an unprecedented sixth time (2011, 2012, 2015, 2017, 2019 and 2021).). The airline’s hub, Hamad International Airport (HIA), was also recently recognised as the ‘Best Airport in the World 2021’, ranking at number one in the Skytrax World Airport Awards 2021.

Qatar Airways currently flies to more than 150 destinations worldwide, connecting through its Doha hub, Hamad International Airport, voted by Skytrax as the ‘World’s Best Airport’.

A multiple award-winning airline, Qatar Airways was announced as the ‘Airline of the Year’ at the 2021 World Airline Awards, managed by the international air transport rating organisation, Skytrax. It was also named ‘World’s Best Business Class’, ‘World’s Best Business Class Airline Lounge’, ‘World’s Best Business Class Airline Seat’, ‘World’s Best Business Class Onboard Catering’ and ‘Best Airline in the Middle East’. The airline continues to stand alone at the top of the industry having won the main prize for an unprecedented sixth time (2011, 2012, 2015, 2017, 2019 and 2021).

Qatar Airways currently flies to more than 150 destinations worldwide, connecting through its Doha hub, Hamad International Airport, voted by Skytrax as the ‘World’s Best Airport’. Source: Qatar Airways