On February 23, volkswagen group officially issued a statement saying that it is currently discussing a potential Porsche IPO with Porsche Automotive Holdings.
The German automaker said it had reached a framework agreement with its largest shareholder, Porsche Auto Holdings SE, which still requires formal approval from both companies and their supervisory boards. Affected by this positive, Volkswagen Group shares rose as high as more than 10% on the day, closing up 7% to 187.94 euros (about $213.19).
Foreign media reported that if Volkswagen decides to support Porsche's initial public offering (IPO), it may seek to list 25% of Porsche's shares. Some analysts believe that this may become one of the largest IPOs in European history, and the strong premium ability makes Porsche's valuation between 60 billion and 85 billion euros, up to nearly 100 billion US dollars.
In addition, the listing will provide a large amount of entry funding for Volkswagen to support its active promotion of electric vehicles, the development of autonomous vehicles, and the creation of new corporate manufacturing batteries for its electric vehicles.
Compared to Volkswagen, Porsche has been focusing on building better models, and the Volkswagen series is filled with electric vehicles that are not very prominent in sales.
The car manufacturer, known for its internal combustion engine sports cars, sold more than 41,000 Porsche electric coupe Taycan models in 2021. In addition, the all-new electric Macan is expected to launch in the second half of 2023.
Porsche CEO Oliver Blume has said he is eager to keep the cash-generating petrol models, while at the same time promising that unlike Volkswagen, Porsche will always supply internal combustion engines.
As a result, Porsche is almost the only brand among traditional car manufacturers to keep profit margins above 15% and accelerate electrification.
In 2021, Porsche delivered 95,600 units in the Chinese market, accounting for 32% of global sales, which has become The world's largest single market for the seventh consecutive year.