Investors and analysts looking for a Porsche IPO got their hopes dashed on Monday.
Executives at the company made clear on Monday that there currently aren’t any plans for a Porsche IPO in the works. They also went on to say that any reports suggesting otherwise are incorrect.
Why exactly did the company have to come out and deny talk about a Porsche IPO? Well, the company CFO Lutz Meschke made comments on Friday about such a possibility. He stated that combining Porsche and other luxury brands owned by Volkswagen (OTCMKTS:VWAGY), such as Lamborghini, Bugatti and Bentley, would result in a company with a value of $81 billion.
Meschke’s comments about a possible Porsche IPO were only first reported on Monday. However, analysts quickly started discussing the possibility that an IPO was in the works. Part of the confusion about the matter was how detailed the CFO was with his statements.
It is also likely that many analysts were simply being hopeful about a possible Porsche IPO. There have been pushes for years now for just such a thing. The argument is that Volkswagen has loads of locked potential that an IPO of Porsche could unlock, reports The Wall Street Journal.
Porsche also notes that CFO Lutz Meschke was more talking about how an IPO can be good for automakers in the current period of transformation. It notes that this includes the success that Ferrari (NYSE:RACE) saw from its IPO.
VWAGY stock was up 2% as of Monday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.