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Porsche CEO says he is open to the company's IPO


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Porsche CEO says he is open to the company's IPO

Porsche CEO Oliver Blumehas shown interest in the company's IPOif the parent Volkswagen Group decides to pursue one."I think Porsche could be an interesting part for thinking about an IPO. We have to hand it to Volkswagen, and they have nothing decided," Blume said during a briefing with U.S. reporters.

Listing Porsche publicly can be beneficial to boost Volkswagen's stock-market valuation and catchup with Toyota or Tesla. Also,with the current shift towards electric mobile and automation, Volkswagenis speaking with advisers to study the merits of a potential listing of Porsche.

However, Volkswagen Group CEO Herbert Diess was not serious about the development and said the group has no "immediate need" to raise funds for its costly push into electric cars, batteries, and automation. He said the Volkswagen Group, which owns 12 automotive brands, generates ample cash to pay for the transition.

Porsche has been performing well in China, its largest market, and even in the pandemic, the deliveries just dipped 3 percent last year. This had helped the company maintain a double-digit profit margin when other automakers suffered losses. Porsche contributed 42 percent to Volkswagen Group's operating profit in 2020.

Porsche Chief Financial Offier Lutz Meschke first favoured the IPO back in 2018. According to him, such a move could unlock value and replicate Ferrari's successful share sale years earlier. Meschke said at the time that Porsche could be worth up to 70 billion euros ($83 billion) in such a scenario.

 


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