Volkswagen Considering Taking Porsche Public

Porsche

Volkswagen is exploring a possible initial public offering (IPO) of luxury brand Porsche AG as an option to pay for its pricey transition to a focus on software and electric vehicles, two people who are aware of the talks told Reuters Tuesday (Dec. 7).

There have been rumors about a Porsche IPO for a while, with those conversations including speculation that it might break records — with predictions ranging from 45 billion to 90 billion euros ($101 billion) — if it happens. A complex ownership structure is stalling the process, the sources told the news outlet, adding that an IPO may never come to fruition.

The Porsche and Piech families, who control Volkswagen’s largest shareholder Porsche SE, are considering selling part of their VW stake with an eye toward “a substantial stake purchase” in Porsche if it goes public, Reuters reports.

The families own 31.4% of Volkswagen shares and have 53.3% of voting rights through Porsche SE. They could sell enough shares to raise about 15 billion euros. Even if they sell some shares, they’d remain the largest Volkswagen shareholder, ahead of Lower Saxony’s 11.8% equity stake and 20% voting rights.

Porsche SE called the report about a possible “pure speculation, while Volkswagen declined comment. Chief Executive Herbert Diess said in October that Volkswagen was constantly reviewing its portfolio, but gave no further comment about a Porsche IPO.

Related: Porsche Extends Online Sales Tool To Include New Vehicle Inventory

In August, Porsche expanded its online eCommerce platform, Porsche Finder, to include new inventory from all 193 U.S. dealerships, which now access to an online hub to shop for Porsche cars from dealers. Users can determine the potential value of a trade-in vehicle, review financing choices and submit an online credit application with Porsche Financial Services.

Porsche launched the Porsche Finder online sales tool in Germany in October 2019, expanding to include Spain, Portugal, Switzerland, Italy, France, Poland, Slovenia and Estonia by December 2020. Online sales in China began in fall of 2020. The digital platform was available in 15 countries through August.