After months of rumors and speculation, Volkswagen AG has officially confirmed they’re in “advanced discussions with Porsche Automobil Holding SE regarding a potential IPO” for Porsche.
Details are limited at the moment, but the two sides have already negotiated a Framework Agreement that would serve as a basis for further steps in preparation for a potential initial public offering of Porsche.
However, nothing has been decided as Volkswagen noted the Framework Agreement is subject to the approval of their Management Board and Supervisory Board. The company added the contents of the agreement as well as the potential IPO itself is currently an open question.
Also Read: VW Still Said To Be Considering Porsche IPO, Could Be Worth Over $100 Billion
For their part, Porsche acknowledged Volkswagen has “decided to examine the possibility of listing Porsche AG on the stock exchange” and noted their Executive Board “welcomes this decision” as it “underlines the very successful development of the company.”
Porsche AG Executive Board Chairman Oliver Blume also released a statement saying, “Porsche is a strong brand with a robust business model and a worldwide fan community.” He added the company is currently pursuing “ambitious sustainability goals” and said “Porsche and Volkswagen can continue to benefit from joint synergies in the future.”
Porsche said the decision on rests “solely with Volkswagen AG’s executive bodies,” so they are unable to provide any further details. However, it appears the company’s leadership is hoping for an IPO.
That being said, Volkswagen Group CEO Herbert Diess has previously downplayed the possibility of an IPO by saying “You don’t want to give up a pearl like Porsche.” However, there’s billions on the line as some analysts have suggested a Porsche IPO could be worth up to $100.7 (£75.2 / €90) billion. Those funds could obviously come in handy as Volkswagen is embarking on a massive electric vehicle push.
Regardless of what happens, there’s been an assortment of automotive IPOs over the past few years including Rivian, Lucid, Lordstown, and Faraday Future. Furthermore, Polestar is slated to go public in the first half of this year.
