Volkswagen Group in advanced discussions over Porsche stock float

Volkswagen Group in advanced discussions over Porsche stock float

German automotive giant, Volkswagen AG, is reportedly in ‘advanced talks’ with the Porsche holding company, Porsche Automobil Holding SE, regarding a potential stock market flotation of the sportscar maker.

The two enterprises have supposedly agreed upon a framework structure over the next steps to be taken for the listing, which have also been sent for approval to the company board.

However, it is not guaranteed that the holding company will go ahead with the IPO plans for Porsche, with Porsche SE stating that while it is open to the idea, the possibility depends upon the approval from the boards of both carmakers.

Porsche would become the latest in a series of performance brands going public, following in the steps of Swedish EV brand Polestar, who is set to become a publicly listed entity on Nasdaq by the end of the year, with the help of a special-purpose acquisition company.

Meanwhile, British sportscar maker, Lotus, has also confirmed that it is contemplating a flotation of its EV division, Lotus Technology, which is based in China.

Last year, reports around Volkswagen Group possibly floating Porsche to fund its all-out electrification transition across the group’s multi-brand portfolio had emerged.

Analysts have suggested that it holds the potential of being one of Germany’s largest public offerings in recent years.

Porsche has consistently contributed a significant proportion to Volkswagen Group’s profits since it was acquired by the corporation a decade ago, with analysts placing its market valuation at almost €200 billion ($227 billion), nearly double the value of its parent firm.

The group had recently pledged an investment of £76 billion ($103 billion) in new technology over the coming four years, as part of its electrification plans.

Some of those plans include the setting up a second production line for its EV Volkswagen ID 3, introducing new flagship electric cars from Audi and Volkswagen, establishing a new manufacturing facility in Wolfsburg as well as six new electric vehicle battery factories across the EU by 2030.

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