Volkswagen AG (VOW3), Europe’s biggest automaker, is planning an initial public offering (IPO) of Porsche, seeking a listing of its most profitable asset to help fund its transition to electric vehicles.
Under a plan code-named “Phoenix,” investors could be offered about 25% of non-voting shares in the iconic sportscar maker, according to media reports.
The tentative listing, estimated to value Porsche at as much as 85 billion euros ($96 billion U.S.), would partly reverse a tumultuous takeover of Porsche more than a decade ago and signals the extent of the upheaval sweeping the global automotive industry.
While details and timing are still be worked out, the IPO could happen in the second half of this year and might include a special dividend to help finance the transaction.
Going ahead with an IPO of Porsche will require Volkswagen to walk a tightrope between key shareholders that own almost all the group’s voting stock and external investors under VW’s complex governance structure.
Volkswagen has been pushing for years to adopt a less centralized corporate structure to become more nimble and step up its challenge to electric vehicle leader Tesla (TSLA).
Volkswagen’s stock surged as much as 10% on news of a possible Porsche IPO. VW’s share price has gained 6% year-to-date and currently trades at 191.84 euros.
