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Volkswagen considers listing of Porsche to boost cash flow
Volkswagen considers listing of Porsche to boost cash flow-April 2024
2023-12-14 EST 02:30:09

Volkswagen considers listing of Porsche to boost cash flow

- The options currently being explored are expected to boost valuation and in the process bring in cash.

- Listing may take place next year.

- Proceeds will be diverted to EV research and development.

Sources state that Volkswagen mulls a separate listing of its Porsche sports-car unit in a deal that’s meant to boost its valuation and bring in a significant amount of cash.

According to confidential reports, people familiar with the matter have revealed that VW is currently speaking with advisers to study the merits of a potential initial public offering or spinoff of Porsche. VW could use any proceeds from a listing for acquisitions or technology investments.

It comes at a time when Herbert Diess, Chief Executive Officer, VW, told reporters last month about how Tesla and other EV manufacturing companies are taking advantage of the market’s optimism towards EV growth prospects.

And at the same time, attracting investors who see the EV revolution as a better shot to a more fruitful future. It’s a no-brainer for them to step aside from investing in those existing car makers who’ll need to spend billions to develop EVs, while restructuring operations that presently revolve around combustion engines.

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