A Porsche IPO can be on the cards as Volkswagen (VWAGY) ponders listing the sports car unit five years later Stellantis (STLA), formerly Fiat Chrysler, spun off Ferrari (RACE) and watched Ferrari’s stock go up.
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Volkswagen is considering listing its Porsche luxury car unit in a deal that could boost its valuation and bring in a large amount of money, sources told Bloomberg.
Meanwhile, the German auto giant is talking to advisers about a potential initial public offering or spin-off of Porsche, the report added. Volkswagen could use any revenue for acquisitions or investments in technology by focusing on making electric cars.
A Porsche IPO could take place as early as next year, the report said. In addition, Volkswagen plans to maintain a majority stake if it lists the unit.
However, Volkswagen declined to comment with Bloomberg. A German magazine previously reported the potential Porsche announcement.
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Volkswagen Stock falls amid Porsche IPO report
The shares fell 0.3% to 22.01 on Thursday’s stock exchange. Volkswagen shares have a lagged RS line, according to the analysis of the MarketSmith chart. Ferrari fell 0.6%, trading under the 50-day line, and Stellantis rose 0.9%.
Volkswagen’s reported interest in a Porsche listing to increase its rating or raise money echoes the Ferrari IPO planned by the former head of Fiat Chrysler, the late Sergio Marchionne.
And in October 2015, Ferrari shares were quoted at $ 52 per share on their debut in the stock market, at the upper limit of the expected range. During the Ferrari IPO roadshow, Marchionne introduced the sports car unit as a luxury brand, similar to a Birkin bag from Hermes, instead of an automaker.
Volkswagen CEO Herbert Diess is said to regret the high ratings for Tesla (TSLA) and new EV stocks, such as Nio (NIO) while legacy car manufacturers are left behind.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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