Volkswagen still exploring potential Porsche IPO – report

According to a recent report by Reuters, Volkswagen is still looking into a possible initial public offering (IPO) of Porsche as a means to fund the sports car maker’s push into software and electrification development.

A Porsche IPO has been widely rumoured for some time now, although there has been no clear indication that it will happen. In August, Volkswagen Group board chairman Herbert Diess said that any steps to take Porsche public “would have to be carefully considered.”

Reports claim a possible public listing of Porsche could result in a pretty substantial valuation of between 45 billion and 90 billion euros (around RM214.6 billion and RM429.1 billion, or USD50.8 billion and USD101.6 billion).

However, sources told the news organization that “no decision has been made due to a complex stakeholder setup.” Currently, the Porsche and Piech families control Porsche Automobil Holding SE (Porsche SE), which holds a 31.4% stake in the Volkswagen Group, making it the company’s largest shareholder and giving the families 53.3% of voting rights.

This makes a Porsche IPO a complicated affair, although Germany’s Handelsblatt previously reported the families are considering selling part of their Volkswagen Group stake – around 15 billion euros (around RM71.5 billion) worth – to fund a substantial equity purchase in a possible Porsche IPO. Porsche SE said this was “pure speculation,” while Volkswagen declined to comment on the matter.

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