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Highlights:
- The sales revenue of Porsche was 28.7 billion euros in 2020, and its operating profit was 4.2 billion euros.
- About the Porsche IPO, Volkswagen said that its actual feasibility would depend on different parameters and general market conditions.
- Volkswagen aims to become the largest electric vehicle maker in the world by 2025, and it is expected to use the gross proceeds from Porsche IPO to achieve its objective.
Luxury car brand Porsche AG could be going public late this year, and the automaker could be valued at around 90 billion euros at the time of the offering.
According to reports, Volkswagen Group and Porsche Holding SE have agreed to Porsche AG's public listing, and the initial public offering (IPO) could happen by the fourth quarter of this year.
Some analysts believe that Volkswagen could be looking forward to Porsche IPO to raise the value of the Germany-based automaker's shares, which have unperformed the European sector since the past year.
Significant developments of expected Porsche IPO
On Thursday, February 24, Volkswagen AG released a statement and announced it would conduct an assessment on the feasibility of Porsche IPO.
The Board of Directors of the German automaker have concluded a framework agreement between Volkswagen AG and Porsche SE.
Volkswagen management believes that a Porsche IPO would prove critical for Volkswagen's transformation into a vertically integrated mobility group.
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The German automaker is transitioning from a combustible engine carmaker to software-based and emission-free vehicles.
About the IPO, Volkswagen said that its actual feasibility would depend on different parameters and general market conditions.
In the event of a public debut, Volkswagen would hold a majority stake in Porsche AG. The luxury car brand is expected to be divided into 50 per cent ordinary shares and 50 per cent preference shares.
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Volkswagen said that 25 per cent preference shares would be placed on the market if Porsche IPO happens. The company statement mentioned that Volkswagen and Porsche AG would continue their industrial cooperation even after the IPO.
Bottom line
Volkswagen aims to become the largest electric vehicle maker in the world by 2025, and it is expected to use the gross proceeds from Porsche IPO to achieve its objective.
Porsche is famous for its luxury vehicles worldwide, and it delivered 272,162 vehicles in 2020. The company claims to be the most profitable maker of classic sports cars.
The sales revenue of Porsche was 28.7 billion euros in 2020, and its operating profit was 4.2 billion euros.
Also Read: Porsche IPO: Can Canadian investors buy the automaker's stock?
