VW shares are on the rise Thursday after reports that the company is weighing a listing of its Porsche brand, “among other options” to unlock value. VW preferred shares were up as much as 5.7% on the news and Porsche SE was up as much as 6%.
VW shares in Frankfurt popped as much as 3.4% on the news.
The report states that should Porsche list its shares, it would only list a maximum of 25% of the company at a “total estimated value of EU20 billion to EU25 billion, according to internal calculations,” Bloomberg wrote on Thursday.
The move wouldn’t just unlock value for VW, it would allow public market participants to find the mean between the automaker’s value and where certain other EV automakers *cough* are valued publicly. It would also likely add to the company’s access to liquidity, as going public generally does.
Citing an unidentified member of the group’s top management, the report noted that the listing likely wouldn’t happen this year. Volkswagen didn’t comment on the news.
Nord/LB analyst Frank Schwope, who has a “hold” rating on VW, commented Thursday that the partial IPO would be a “very bold” move due to the fact that “the sports car brand is tightly interwoven with the wider group’s structure,” according to Bloomberg.
Schwope instead suggested the potential sale of Traton, Ducati or Lamborghini to unlock value. He said those options would make “far more sense”.
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