VW targets Porsche IPO as electric vehicles loom

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.