An IPO of Porsche could increase its value and cash.
Experts believe that Porsche is worth more than its parent company.
Listing could occur next year.
We’ve reported many stories on start-up carmakers cashing heavily thanks to investors looking for the next big thing. Volkswagen, long-established and certainly not a start-up company, might be on the verge of listing Porsche, by far its most valuable asset, in order to cash in on the enthusiasm.
Listing Porsche would create an opportunity for Volkswagen to get in on the mad rush from investors to essentially find the next Tesla. In this scenario, Volkswagen would remain the major shareholder and free the remainder of the in an initial public offering. It was Chief Executive Officer Herbert Diess who sounded the alarm in an interview with Bloomberg News last month.
The optimism in Volkswagen’s growth prospects is different than Tesla however Porsche is something else. The VW Group has announced its intentions to go all-electric in the not too distant future, and that includes Porsche which will, with the exception of the 911, go all-electric by 2030.
“A Volkswagen IPO of its Porsche brand would be a bold solution to generating much-needed shareholder value,” Michael Dean, a Bloomberg Intelligence analyst, said in a note. He also added that his analysis indicates that Porsche has a value of 110 billion euros, more than its parent company which clocks in at 90 billion euros.