[Asia Economy Reporter Yujin Cho] Major foreign media reported on the 5th (local time), citing sources, that Germany's Volkswagen Group has approved the initial public offering (IPO) plan for its sports car brand Porsche and will announce it soon.
The US economic media CNBC reported that Volkswagen's management and supervisory board (board of directors) have made the final decision on whether to list Porsche, a matter that had been long deliberated, and plan to announce it soon.
The timing for Volkswagen Group and Porsche to formalize the listing plan is expected to be at the end of this month or early next month. However, sources said that the listing could be delayed or canceled depending on the decisions of the management or supervisory board and the developments in the stock market.
Porsche's corporate value is estimated to be between 60 billion and 85 billion euros (approximately 82 trillion to 116 trillion KRW). Financial information provider Refinitiv analyzed that if Porsche is listed at the top valuation of 85 billion euros, it would be the largest IPO in German history and the biggest in Europe since 1999.
Inside and outside the market, there are concerns about a risky timing for debuting on the stock market due to external negative factors such as sluggish European stock markets, high inflation, and fears of an energy crisis caused by Russia's suspension of gas supplies to Europe.
According to the German Automobile Association, the number of passenger car deliveries in Europe this year is expected to decrease by 4% compared to the previous year, indicating that sales recovery to pre-COVID-19 pandemic levels is not anticipated.
However, US-based Stifel Financial analyzed that since Volkswagen is investing 52 billion euros by 2026 to develop electric vehicles, Porsche's IPO will be a key source of funding, and this listing is clearly positive for shareholders.
Porsche is a German automobile manufacturer under the Volkswagen Group, producing sports cars, supercars, and sport utility vehicles (SUVs). Volkswagen and Porsche Automobil Holding SE (Porsche SE) reached a basic agreement on Porsche's listing plan in February.
Volkswagen Group and Porsche declined to comment on the schedule of the listing.
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