BERLIN, Oct 4 (Reuters) – Volkswagen brands are preparing for possible initial public offerings (IPOs), CEO Oliver Blume told the Handelsblatt newspaper on Tuesday, without saying whether further listings are planned.
Following Thursday’s IPO of Porsche, investors expect other brands to go public, which would unlock the German group’s underlying value, which executives see as heavily underrated.
Currently unlisted brands include Audi, Lamborghini, Bentley, Skoda, Seat and Cupra.
Advised by a team of bankers, the managing directors and chief financial officers of each brand strive to refine their objectives taking into account the financial markets, said Oliver Blume. The results of this exercise will be presented next year during an investor day.
“You have to understand it as a training session,” said Oliver Blume. « Within the Volkswagen Group, I sense a clear motivation to make capital markets more relevant. »
“I could certainly imagine the Volkswagen Group as a kind of holding company for various listed companies. Done wisely, this could add significant value and improve the competitiveness of the group and the brands,” said Arndt Ellinghorst, automotive expert at the company. QuantCo data, about Oliver Blume’s comments.
Porsche’s market valuation is already almost equivalent to that of its former parent company, which Oliver Blume says is an indicator of the group’s potential.
However, the IPO of Porsche has not yet benefited the valuation of Volkswagen, whose title is down about 10%, some of the shareholders having redirected their investments to the former subsidiary.
Volkswagen chief financial officer Arno Antlitz said last week that evaluating a possible IPO of battery unit PowerCo was the next priority, brushing aside possible other brand listings.
Volkswagen shares were up at 130.62 euros at 08:33 GMT from Friday, in line with a broader rise in the European auto sector. (Report Victoria Waldersee, French version Augustin Turpin, edited by Sophie Louet)