Volkswagen is considering the option of floating its profitable Porsche brand, set to be one of the biggest IPOs in Germany, according to a news release by Volkswagen on Tuesday.
- The world’s second-largest car manufacturer by volume stated that it was in advanced discussion with its majority shareholder, the family-owned Porsche SE, regarding the possible IPO of the car brand.
- The company stated that they negotiated a Framework Agreement with Porsche Automobil Holding SE that will form the basis for further steps in preparing for a possible IPO.
- Volkswagen shares surged 9% to €190.14 by mid-morning in Frankfurt after the announcement. Porsche SE shares also jumped 9% to €88.88.
Volkswagen has vowed to spend €52 billion on emissions-free models, but the company needs funding for battery factories and securing the necessary materials. Volkswagen Group up +9.84%.