Volkswagen Plans IPO of Porsche to Ignite EV Shift Momentum

(Bloomberg) -- $Volvo AB Unsponsored ADR Class B(VLVLY.US)$ AG is preparing an initial public offering of $PORSCHE AUTO HL SE(POAHY.US)$ , seeking a listing of its most profitable asset to help boost the parent’s valuation and fund the push into electric vehicles.

Under a plan code-named “Phoenix,” the carmaker and Porsche Automobil Holding SE, the billionaire Porsche and Piech family’s main investment vehicle, have sketched out a framework that navigates VW’s convoluted structure. Investors could be offered about 25% of non-voting shares in the iconic sportscar maker while the family buys a minority blocking stake, according to people familiar with the deliberations.

The tentative listing, estimated to value the sportscar brand at as much as 85 billion euros ($96 billion) by Bloomberg Intelligence, would partly reverse a tumultuous takeover of Porsche more than a decade ago and signals the extent of the upheaval sweeping the industry.

While details and timing remain in flux, the IPO could happen in the second half of this year and might include a special dividend to help the Porsche and Piech family, who own 53% of VW voting shares, finance the transaction, said the people, who spoke on condition of anonymity.