Porsche IPO Could Become a Reality in Fourth Quarter of This Year

Word is that VW is in “advanced” discussions over a Porsche IPO–meaning a Porsche spin-off is closer than ever.

By now most folks are familiar with the failed attempt by Porsche to take over Volkswagen. The whole affair involved wealthy investors from Qatar, the German government, hedge funds and a whole lot more. An entire book could be written on the subject. Since this is clearly not a book, the short upshot of it all is that VW ended up controlling Porsche in 2012. And now after a full ten years of the Porsche brand being a wholly owned subsidiary of VW things appear to be about to change. A Porsche IPO is in the works.

As recently reported by The Economist Porsche and VW appear to be closer than ever to a major shift in their business structure. There is no formal announcement and numbers are still in flux but at this point it seems a Porsche IPO could come to pass as soon as Q4 2022. The IPO could put a valuation on Porsche in the neighborhood of $100 billion. That would be a healthy number and represent more than half of VW’s current market capitalization. It is also roughly the same amount buyers of the 992 GT3 have spent on dealer markups. We kid of course, we kid.

IPO Benefits

VW wants to focus on developing EVs. Raising cash by spinning off Porsche via an IPO could be the shot in the arm VW needs to turn its EV future dream into a reality. VW boss Herbert Diess is also looking to streamline VW’s collection of automotive brands. Remember that Porsche is not the only automaker under the VW umbrella. There is also Lamborghini, Bentley, Audi and others. There are ten distinct marques in total. And Porsche wants to be Porsche. For us as enthusiasts it is great but for a company like VW it is a headache. For example, Porsche insisted on developing its own platform for the Taycan instead of sharing one with another VW brand.

Porsche is Worth How Much?

As stated above the IPO is expected to put the Porsche valuation at around $100 billion. And that value is not just a function of sales volume. A significant portion of the value comes with the Porsche brand recognition and the prestige that is attached to it. That is typical of luxury automakers. If you look at Ferrari, they trade at 41 times estimated earnings, but Toyota is at 6 times earnings. Porsche might not be Ferrari, but they are closer to them than Toyota.

Who Would Buy the Stock?

Well, there will be stock available for you and I to purchase. So, the general public can invest in not just the cars but the company that makes them. Although individual investors will likely make up small pieces of the pie. The Porsche and Piëch families would likely own significant shares. But this is of course still all speculation at this point. But no matter who buys how many shares it seems like the day is drawing near when a Porsche IPO will be announced. This could be an exciting development for both the Porsche and VW brands. As we learn more, we will be sure to share it here.

Photos: Porsche

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Joe Kucinski

Joe has been obsessed with cars since he got his very first Matchbox toy in the ‘70s. In 2003, he found a new obsession in track days that led to obtaining his SCCA competition license in 2015. In 2019, he became a certified driving instructor for the National Auto Sport Association. His love for all things four wheels has never wavered, whether it's driving some of the best cars in the world on the racetrack, tackling 2,000-mile road trips in 2-seat sports cars or being winched off the side of a mountaintop in a Jeep. Writing for the suite of Internet Brands Auto Communities sites, including Rennlist.com, Ford Truck Enthusiasts, 6 Speed and more allows him to share that knowledge and passion with others.