Volkswagen Group ‘in advanced discussions’ over Porsche stock market flotation
A potential IPO of the luxury car brand would raise a lot of cash.
The Volkswagen Group is in ‘advanced discussions’ to float Porsche on the stock market.
In statements from Volkswagen AG and Porsche Automobil Holding SE, a holding company with the majority of ordinary shares in VW Group, it was confirmed that a framework is in place for the next steps in the process of a potential IPO (initial public offering) of Porsche, and is subject to approval from the boards of both companies.
A final decision has not yet been taken, but VW shares increased 10 per cent to over €192 after the announcement.
There have been rumours over the past year that VW was planning a Porsche IPO, but this is the first confirmation to come from the companies involved, coming ‘against the background of corresponding press inquiries’.
It is believed that the move to float the German luxury car maker is motivated by raising funds to help VW Group’s transition to electric vehicles.
Bloomberg Intelligence reports that Porsche could be valued at up to €85 billion (£71.1bn), with the Financial Times reporting that it could be one of Germany’s biggest public offerings in recent years.
Last year, the VW Group announced plans to invest £76bn over the next four years as part of a push to make a quarter of its sales electric vehicles by the end of 2026.
Porsche would join a number of car companies raising funds by going public recently. For example, Volvo-owned Polestar will be listed on the Nasdaq later this year via a special purpose acquisition company, while British-based Lotus says it is evaluating the flotation of Lotus Technology, its China-based electric vehicle arm.
