Sep 6, 2022 - Economy

VW targets Porsche IPO as electric vehicles loom

Global sales of Porsche vehicles
Data: Volkswagen AG annual reports; Chart: Simran Parwani/Axios

Volkswagen is pursuing an IPO of its lucrative Porsche division, aiming to capitalize on the luxury brand's sales momentum and electric future.

Why it matters: VW is seeking to bankroll its own global pursuit of electric vehicles — and an IPO could do the trick.

Driving the news: The German automaker plans to sell 25% of its Porsche shares — half of which will be acquired by the Porsche family and half of which will be sold through the IPO.

  • Volkswagen will retain 75% of Porsche and will continue to coordinate operations closely.
  • The offering could value Porsche at $59.8 billion to $84.6 billion, according to analyst estimates reported by the Wall Street Journal, in a deal that would reserve voting power to the Porsche family.

State of play: Porsche sales have been on a roll for years as the brand has capitalized on the world's transition to SUVs, having popularized the Macan and Cayenne models.

  • Porsche also plans to convert most of its sales to electric vehicles by 2030, much like VW itself.
  • Porsche has been VW's "cash cow" for years, representing 50% of the automaker's pretax profit from passenger cars last year despite making up only 3% of its vehicle sales.
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