Recently, volkswagen group (hereinafter referred to as "volkswagen group") issued a statement saying that it is discussing a potential IPO with Porsche Automotive Holdings.
To this end, the Volkswagen Group and Porsche Automotive Holding have reached a framework agreement that will serve as the basis for Porsche's future listing.
In the statement, volkswagen group also said that the conclusion of the framework agreement still needs to be approved by the management committee and supervisory board of volkswagen group, and there is no final decision, and whether Porsche is listed is currently undergoing further evaluation.
For the rumors of the Spin-off, Porsche China CEO Yan Boyu recently told the media, "Porsche's good profitability gives Porsche a good valuation, but regarding the spin-off and listing, Volkswagen Group and Porsche Group need to jointly discuss and make decisions, and Porsche China is temporarily inconvenient to respond to this problem." ”
Hong Sheng, vice president and CFO of Porsche China, pointed out that many new car-making forces may be listed in consideration of the lack of funds, while Porsche has maintained high profitability and a return on sales of more than 15%.
According to the report disclosed by Porsche China in the media communication meeting in 2022, porsche new car deliveries in the Chinese market in 2021 were 95671 units, an increase of 8% year-on-year, accounting for 32% of global sales, becoming Porsche's largest market for seven consecutive years, of which the pure electric model Taycan set a record delivery record of 7315 units. According to the latest earnings report released by the Volkswagen Group, as of the first three quarters of 2021, the Porsche brand generated a pre-tax profit of 3.4 billion euros, accounting for 34% of the total profit of the Volkswagen Group's automotive business.
Some insiders pointed out that the spin-off of Porsche listing will provide new funds for Volkswagen to support its large-scale entry into electric vehicles, the development of new technologies such as driverless cars, and the creation of new businesses for the production of electric vehicle batteries.
Bloomberg Intelligence estimates that Porsche's valuation could range from €60 billion to €85 billion. In addition, companies Market Cap shows that in addition to the major Volkswagen brands and Porsche, Volkswagen Group also owns luxury car brands such as Audi, Lamborghini and Bentley, and the current market value of Volkswagen Group is about $127.9 billion, ranking third in the world among car companies, second only to Tesla and Toyota.