Volkswagen announced on Monday its intention to float luxury sports car brand Porsche for an initial public offering in what could be one of the world’s largest listings. The IPO, with an expected valuation between 60 billion and 85 billion euros, is set to be launched in the face of major economic issues including the ongoing energy crisis and record inflation.
Efforts to float the IPO are expected to begin in October with the listing completed by the end of the year. Volkswagen warned, however, that the timing of the listing is “subject to further capital market developments.”
Refinitiv data showed that the Porsche IPO could be the largest in Germany’s history as well as the biggest in Europe since 1999. While other luxury carmakers such as Ferrari and Aston Martin have declined in value, the Porsche brand has remained strong in the face of tightening economic conditions. Qatar has been reported as the main investor in the newly-listed company, gearing up to acquire a 4.99% stake.
Porsche has been a strong moneymaker for the Volkswagen Group in recent times, boosting its operating profit by 22% in the first half of the year. This is a stark contrast to the 8% fall suffered by the group as a whole.