After years of rumours and speculation, Volkswagen and its biggest shareholder, Porsche Automobil Holding SE have confirmed that they are in advanced talks about an initial public offering (IPO) of stock in luxury sports car manufacturer Porsche AG.
Last week, Volkswagen stated that it will conduct an assessment on the feasibility of a Porsche IPO, having already worked out a framework agreement to prepare for the potential listing.
A Porsche AG listing would provide more capital for Volkswagen to pursue plans for a stronger focus in electric and self-driving cars:
“The Group’s Board of Management believes that a possible IPO of Porsche would be an important next step in the successfully launched transformation of Volkswagen into a vertically integrated mobility group and leading provider of software-based and emission-free mobility,” Volkswagen stated.
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The automaker also revealed that in the event of the possible IPO, Porsche’s capital stock would be split into 50 percent preference shares and 50 percent ordinary shares, with up to 25 percent of the preference shares being placed into the market. Bloomberg Intelligence estimates a valuation of up to 85 billion euros for Porsche.
However, the automaker also said in its statement that no final decisions have been made, and that the actual feasibility of an IPO is down to several different parameters and general market conditions.
Volkswagen CFO Arno Antlitz has, however, commented that the listing could happen as early as the fourth quarter of 2022, Reuters reports.
In addition to Porsche, Volkswagen also owns Lamborghini, Bugatti, Bentley and Audi, among a number of other automotive brands.