The automotive IPO craze doesn’t show any signs of slowing down and a new report suggests Porsche could join the likes of Polestar and Rivian.
Citing two people familiar with the matter, Reuters is reporting Volkswagen is still considering a Porsche IPO as a “way to fund its costly shift towards software and electric vehicles.”
The IPO rumors have been swirling for months and previous reports have suggested an initial public offering could be worth up to $101.4 (£76.6 / €90) billion. That’s some serious dough and the funds could be used to help ramp up Volkswagen’s electric vehicle push.
Also Read: VW CEO Hints That They Might Consider Taking Porsche Public
However, the sources stated “no decision has been made due to a complex stakeholder setup” which involves the Porsche and Piech families as well as plenty of intrigue from the early 2000’s. As the publication noted, the families own 31.4% of Volkswagen shares but have 53.3% of voting rights via Porsche SE.
This makes an IPO a complicated affair, but previous reports have suggested the families were considering selling part of their stake in Volkswagen to acquire a stake in a possible Porsche IPO. However, Porsche SE called that “pure speculation.”
That’s just scratching the surface of the complex relationship between Porsche and Volkswagen, but it remains unclear when an IPO would occur if it gets approved.
While a lot of questions remain, investors have fallen in love with automotive stocks and Rivian recently made a thunderous debut on Wall Street. The stock started at $78 (£58.91 / €69.21) and surged to over $172 (£129.90 / €152.63), before settling back down around $116 (£87.61 / €102.93). Investors have also gotten a taste of Lucid, Lordstown and Faraday Future with varying degrees of success.
