Porsche Discounts CFO’s Hint of IPO Plan

Porsche AG has refuted comments by its chief financial officer that hinted the Volkswagen Group brand might float an initial public offering.

But Porsche insists it isn’t pursuing a full or partial listing and notes that any such decision would come from VW Group.

Last Friday Porsche CFO Lutz Meschke floated the notion of a “super premium brand group” to reporters in Germany. He suggested that an IPO which bundled Porsche with VW Group’s Bentley, Bugatti and Lamborghini brands would more than triple the market cap of Ferrari NV, which is worth about €19 billion ($22 billion).

Meschke noted that multiples for the makers of luxury goods are significantly different than those of lesser premium brands. He predicted the grouped VW brands could generate a market valuation of €60 billion-€70 billion ($70 billion-$81 billion).

Meschke added that such an IPO would likely increase the value of VW Group, just as Ferrari’s offering in 2015 boosted the market worth of parent Fiat Chrysler Automobiles NV.