VW Group are in advanced discussions with Porsche Automobil Holding, the group’s largest shareholder, about a potential IPO of the Porsche brand—and the two parties have negotiated a framework agreement as the basis for preparing such a step.
An IPO could include the acquisition of ordinary shares—which bestow voting rights upon the holder of Porsche AG.
Speculation about a Porsche listing, which could be a record-breaking IPO, has lifted hopes on the stock market several times over the past year, but no decision has been made due to a complex stakeholder setup.
Bloomberg Intelligence estimates Porsche could be valued at between €60bn and €85bn. That compares with a current market value of around €112bn for the entire group. A separate Porsche listing could offer a new funding option for the group. VW largely rely on generating enough cash on their own and on bond issues, because their convoluted shareholder structure limits options to raise fresh equity capital without diluting shareholdings of key stakeholders that control about 90 per cent of VW’s voting stock.
Porsche’s Chief Financial Officer Lutz Meschke first raised the benefits of an IPO in 2018, saying such a move could unlock value and replicate Ferrari’s successful share sale years ago.
