Porsche IPO to go ahead with $138 billion value expected

The Volkswagen Group is forging ahead with plans to publicly list Porsche later this year, with the decision set to finance the future of its electric vehicles.

Having floated the possibility of an initial public offering (IPO) earlier this year, Porsche could be listed as soon as the fourth quarter of the year, with Volkswagen seemingly happy with how its performance brand has fared given the tense European political climate, according to Automotive News Europe.

Volkswagen Group Chief Financial Officer Arno Antlitz told the publication Porsche "has proved resilient over the years to market disruptions including the recent supply-chain turmoil", which included Porsche and many other manufacturers pulling out of Russia due to the conflict in Ukraine.

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"There's still capital out there and there is a lot of skepticism about investing capital in technology companies, in new ventures [but Porsche] is very solid," said Antlitz.

Bloomberg believes the Porsche listing could be one of the largest IPOs in German history, with an estimated value of up to €90 billion (AU$138bn) expected to help the brand's production plans for electric vehicles.

The wider Volkswagen Group has already declared its intentions to beat Tesla's EV sales by 2025, a target which extends to its premium brands such as Porsche.

There's no doubt Porsche is aware of the risks of going public after American EV start-up Rivian did so last year, going from being the fifth-most valuable manufacturer with a value of AU$165.2bn to recording a net loss of AU$2.33bn in under six months, as share prices dropped from a peak of US$172-a-share to US$22.78.