HAMBURG, Sept 6 — Volkswagen yesterday announced its intention to float sports car brand Porsche, triggering what could become one of the world’s largest listings even as record inflation and a Russia-Europe energy standoff has sent European stocks tumbling.
“It would be the technical go-ahead, nothing more,” one of the sources said ahead of the decision. “It’s paving the way, but this would not guarantee that the stock market bell will ring in the end.” Investors expect a valuation between €60 billion and €85 billion . While the Porsche brand is strong, valuations of other luxury carmakers such as Aston Martin and Ferrari have fallen.
Preferred shares will also be offered to retail investors in countries in Europe including France, Spain and Italy, an attempt to tap into Porsche’s loyal fan base. Porsche’s status as a luxury brand able to bump up prices makes it a moneymaker for the Volkswagen Group. Its operating profit jumped 22 per cent in the first half of this year, in contrast to an 8 per cent fall at the mass market-oriented Volkswagen brand.