Porsche plots IPO that could value German car maker at £166bn

  • Porsche is in advanced stages of listing on the markets in an IPO
  • German owners have agreed in principle to push forward with plan
  • Brand could be valued as high as 200 billion euros as it transitions to electric future

Time 3:36 pm, February 23, 2022

Porsche could be floated on the stock market in an IPO that could value the sports car manufacturer as high as £166bn.

German owners Volkswagen and the Piech and Porsche families have confirmed they have agreed in principle to look at an IPO.

The move could see the brand valued as high as 200 billion euros (£166bn).

The Financial Times said investors were looking at Tesla’s $875m valuation – and the fact it recently topped $1trillion – as an indicator of where Porsche’s value could sit.

Porsche is working hard on its electric car future with cars like the Taycan, which has been a huge success. It’s a direct rival to Tesla’s Model S.

Porsche is owned in a complicated shareholding, reported The Times, through the Porsche and Piech families who via Porsche Automobil Holding own more than 50 per cent of the Volkswagen Group.

‘Whether a framework agreement is concluded … is currently open and depends on the approval of both parties’ boards,’ said a statement from the families.

However it was confirmed ‘advanced discussions’ were taking place about launching Porsche as a standalone company on the market.

In statements from Volkswagen AG and Porsche Automobil Holding SE, it was confirmed that a framework is in place for the next steps in the process of a potential IPO of Porsche, and is subject to approval from the boards of both companies.

A final decision has not yet been taken, but VW shares increased 10 per cent to over €192 after the announcement.

Stockbroker Jefferies told the newspaper that Porsche could be worth between 60 and 90 billion (£49bn-£75bn) which is between two to three times annual revenues and 20-30 times earnings.

Last year, the VW Group announced plans to invest £76bn over the next four years as part of a push to make a quarter of its sales electric vehicles by the end of 2026.

Porsche would join a number of car companies raising funds by going public. 

Volvo-owned Polestar will be listed on the Nasdaq later this year via a special purpose acquisition company, while British-based Lotus said this week that it is evaluating the flotation of Lotus Technology, its China-based electric vehicle arm.

James Baggott's avatar

James is the founder and editor-in-chief of Car Dealer Magazine, and CEO of parent company Baize Group. James has been a motoring journalist for more than 20 years writing about cars and the car industry.

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