By listing Porsche on the stock exchange, Volkswagen would gain considerable resources, which it could invest in technological development, primarily in the development of self-driving cars and electric cars. “It would be a very bold solution to get much-needed shareholder value,” said Michael Dean, a Bloomberg analyst.
Volkswagen clearly wants to emulate the success of its Italian competitor Ferrari, which separated from its parent Fiat Chrysler in 2015 and its shares have risen by 282 percent since then. However, the discussions are still at a very early stage and it cannot be expected that the Porsche IPO will take place this year.
Above all, it is not clear whether the majority of Volkswagen’s majority shareholders, such as the descendants of the brand’s founder Ferdinand Porsche, or the German state of Lower Saxony, are nodding their intention. It is therefore assumed that the listing will take place at the earliest next year. Nevertheless, the carmaker’s shares rose by six percent in response to the news on Thursday and ended in a positive on Friday. They are currently trading at 170.54 euros per share.
Whatever the IPO, Volkswagen should retain a majority stake in Porsche. It would offer for sale approximately a quarter of shares for 25 billion euros, a maximum of 647 billion crowns. Experts estimate that the market price of the Porsche brand can be up to twenty billion euros higher than the brand value of Volkswagen itself.
In any case, the German giant would not be the only player in the sector to launch major strategic changes recently. American Ford Motor Company announced on Wednesdaythat it will sell exclusively electric cars in Europe by 2030 at the latest. Last year, it did not sell a single electric car on the continent.
Another German carmaker, Daimler, again in early February she revealed the plan separate the Daimler Truck truck and bus division from the parent company and list its shares. Daimler also intends to focus on technological innovations in the coming years and to rename itself Mercedes-Benz in due course.
Škoda Auto, part of the VW Group, has also been investing in research in the field of electromobility for a long time. “Unfortunately, we cannot comment on Porsche’s entry on the stock exchange or other Volkswagen activities,” Škoda spokeswoman Martina Gillichová told the E15 daily.
According to Bloomberg, traditional carmakers are trying to resist the increasingly dangerous American rival Tesla and other young, fast-growing electric car manufacturers, who are vying for leadership positions in the industry. “Tesla’s market value is already about seven times higher than Volkswagen’s value,” the agency said. Dramatic shocks can be expected in the sector in the near future.
Porsche has a reputation as a manufacturer of top sports cars. The company was founded by Ferdinand Porsche, a native of Vratislavice nad Nisou. It became part of the Volkswagen Group in 2009. The idea of entering the stock exchange independently is not new, it was first considered three years ago by the then CFO of Porsche Lutz Meschke.