Volkswagen rose as much as 5% on Thursday after Bloomberg reported the German automaker is evaluating a separate listing for its luxury-car subsidiary, Porsche.
The 84-year-old company is studying the benefits of either a potential stock-market debut or spinoff of Porsche in consultation with advisers, Bloomberg said, citing sources. Proceeds from the potential listing or deal could be used for acquisitions or technological investments, according to the report.
Plans are uncertain at this stage and talks could still fall apart, Bloomberg said.
The Wolfsburg-based company, one of the world’s largest carmakers, owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat, and Skoda brands. Last year, it was forced to suspend production at multiple factories across Europe when the pandemic disrupted supply chains and affected sales. Still, it sold 231,600 electric vehicles in 2020 – more than three times as many as it sold in 2019.
Although there’s no firm timeline for Porsche’s IPO, it could potentially take place in 2022, Bloomberg said. If the stock listing goes through as planned, Volkswagen would retain a majority stake in the business.
The company has 124 production sites across the world. Of those, 72 are based in Europe, with 28 in Germany alone.