A $100 Billion Porsche IPO Could Be In The Works

Volkswagen, one of the largest and most successful auto manufacturers in the world, has begun the massive shift from ICE to EV, and while new all-electric models such as the Volkswagen ID.4 roll off the production line, the company is already looking to invest billions more in its efforts to become the largest EV manufacturer by 2025. Despite lingering legal issues related to emissions regulations, the company is quickly turning its image around and is already a serious thorn in Tesla's side, especially in Europe. To bolster its EV efforts, Volkswagen is exploring a potential $100 billion Porsche IPO. This would mean that the Porsche and Piech families would relinquish a stake in VW to take control of the Porsche company.

The idea of a Porsche IPO has been doing the rounds over the last year and, if it comes to fruition, could be one of the largest IPOs in recent history. According to Automotive News' sources, no official decision has been made, and a prohibitively complicated stakeholder setup could delay proceedings by a significant period. Estimates of a standalone value for Porsche have ranged between $51 billion and $101 billion. It is reported that the Porsche and Piech families, who control major VW shareholding group Porsche Automobil Holding SE, are looking to sell off a share of their VW stake to fund a large purchase in the Porsche IPO. With a 31.4% stake in VW, the holding group could accumulate around $17 billion if it sells enough shares. The second-largest stakeholder in VW is the German state of Lower Saxony with an 11.8% foothold and 20% of the voting right.

Officially, VW is yet to comment, and Porsche SE has called the rumors nothing more than speculation. This hasn't stopped the stock market from doing its thing though: VW preference shares ended 8.6% up after the rumor broke, and Porsche SE stocks saw an increase of 8.5%. If the historic move goes ahead, control of Porsche would return to its ancestral roots. The move sounds like a win-win, with VW gaining some extra wiggle room to expand its EV endeavors, and Porsche gaining greater autonomy in general. Don't expect any changes elsewhere though - Porsche remains committed to making the world's finest driving machines.