Porsche’s parent company, Volkswagen AG said it will list the sports car brand on the Frankfurt Stock Exchange in one fo the biggest IPO in Europe.
The offering could value Porsche anywhere between 85 billion or even higher, however, this will also be a crucial test of investor appetite given the economic climate in that region. Analysts commented the IPO will give Volkwagen fresh financial resources as the group looks to transition to electric for all its makes.
“The listing of Porsche AG will give a fresh tailwind to Volkswagen’s transformation,” VW Chief Finance Officer Arno Antlitz said.
According to WSJ, the automaker plans to list on the Frankfurt Stock Exchange and offer 25% of Porsche’s preferred stock to private investors aiming to list in either late September or October.
Speculation was rife on the listing plans early this year but was denied by top executives, the marque which has seen significant growth over the year including its first production expansion to Malaysia, will be looking to establish itself with IPO and possible fleet add-ons.