Heavyweight: Porsche, here the production in Stuttgart, ensures high profits and margins in the VW group.
Image: dpa
Porsche could be worth 120 billion euros after an IPO and bring VW a lot of money for the conversion. Do the families play along? When and how exactly a possible IPO could look like is still speculated.
fIt would be the event of the year for the capital markets if the Volkswagen Group took its sports car manufacturer Porsche public. Investors have been speculating about such plans for months. VW, on the other hand, cannot be elicited any details, also because the stock exchange supervisory authority looks eagle-eyed at any information that circulates without official mandatory disclosure. Legal disputes after the failed takeover of VW by Porsche a few years ago are still in everyone’s bones. There are also special features of the group that have little to do with pure market logic. The management around CEO Herbert Diess and the shareholder families Porsche and Piëch are pursuing their own goals, and the interests of the state of Lower Saxony, which is involved in VW, and the works council must also be protected. But now it looks more and more like that VW is on the right track to unite the positions.
The sums that are in the room are huge. 100 billion euros or more: Some analysts estimate that Porsche AG – not to be confused with the family holding company, Porsche SE, which is also listed – could reach such a valuation if it were listed on the stock exchange. Even if it decreases, it is clear that the parent company VW will receive considerable funds if it sells shares in its sports car manufacturer via a classic initial public offering, or IPO for short.
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