Porsche to become publicly-traded company

Volkswagen Group has announced its intention to float Porsche on the stock market.

As the parent company of Porsche, the Volkswagen Group says its Board of Management, and Supervisory Board have made the decision to take the next step in taking the sports car brand public.

While full details of the initial public offering (IPO) have yet to be announced – with Volkswagen Group reserving the right to reverse its decision if it deems there to be not enough interest – some investors are predicting it could be one of the world’s largest listings, with a valuation estimated of between €60 billion and €85 billion ($AU87bn to $AU124bn), according to news outlet Reuters.

Even with weakened global financial markets, it’s thought the Porsche IPO could be one of the largest in German history.

While the Qatar Investment Authority has signalled its intention to take a 4.99 per cent stake, the Porsche and Piech families – descendants of the company's founder, Ferdinand Porsche – are expected to be given a large portion of shares.

Volkswagen Group Chief Financial Officer Arno Antlitz revealed the IPO of Porsche is part of the German car giant’s plan to help fund its development of electric vehicles, Automotive News Europe reports.

“This is a key element for the group, especially because the possible proceeds would give us more flexibility to further accelerate the transformation [to electric]," Antlitz reportedly said in an internal interview.

In December 2020, then CEO of the Volkswagen Group, Herbert Diess, detailed the company’s ‘Mission T’ strategy in a LinkedIn post – unashamedly named for its focus on overtaking Tesla (in terms of technology) by 2024.

Volkswagen Group has previously revealed its intention to roll out electrified technologies across all of its brands by the end of this decade, with as many as 70 battery-powered models to be launched by 2028.