Potential IPO for sports car manufacturer could raise funds for VW Group's electrification plans
Porsche Panamera family
The Volkswagen Group is in “advanced discussions” with Porsche Automobil Holding SE over a stock market flotation for the 91-year-old sports car manufacturer.
The Porsche holding company and the Volkswagen Group have agreed a framework structure for the next steps in a potential listing, which has now been sent to the company board for approval.
It’s not yet guaranteed that the company will go ahead with an IPO for Porsche. It says the possibility “is currently open and depends on the approval of both parties’ boards”.
Porsche would be the latest in a succession of performance brands to go public. Volvo-owned Polestar is set to be listed on the Nasdaq later this year via a special-purpose acquisition company (SPAC) and yesterday Lotus confirmed that it’s evaluating a flotation of its China-based EV division, Lotus Technology.
Reports emerged last year that the Volkswagen Group could float Porsche as a means of funding its transition to all-out electrification across its multi-brand portfolio.
According to the Financial Times, it has the potential to be one of Germany’s biggest public offerings in recent years.
Porsche has been part of the Volkswagen Group for a decade and consistently contributes a significant proportion of the company’s profits.
The FT cites analysts as estimating a market valuation of up to €200 billion (£167bn), which would be nearly double the value of its parent company.
The Volkswagen Group recently pledged to invest £76bn in new technology over the next four years as part of its electrification ambitions.
Specific investments include a second production line for the Volkswagen ID 3, a new manufacturing facility in Wolfsburg, new flagship EVs from Volkswagen and Audi and six new EV battery factories across Europe by 2030.
Keyword: Volkswagen Group in advanced talks over Porsche flotation