Porsche announces its IPO

The luxury car brand Porsche is now ready to go public. Its ambition is to exceed a value of 100 billion dollars and invest in its ecological transition.

Eva Morletto

By Eva Morletto07 septembre 2022

The German luxury car brand is currently valued at €80 billion (Shutterstock)

Porsche is now ready: the brand will be listed on the stock exchange by the end of 2022. This was announced by its parent company, Volkswagen. According to analysts, the transaction could be the financial event of the year for the European financial markets. The listing of the Porsche subsidiary on the Frankfurt Stock Exchange, approved by the Volkswagen Supervisory Board, is expected to begin at the end of September. The Board has been waiting for the Porsche and Piëch families - who hold 31.4% of the shares and 53.3% of the voting rights in the financial holding company that controls the group - to find common ground before proceeding with the operation.

According to Bloomberg estimates, the brand is currently worth between 60 and 80 billion euros. This very large capital makes Porsche one of the most highly valued automotive companies in the world, and therefore its listing on the Frankfurt Stock Exchange will have a decisive impact on financial market prices in the coming months. Porsche plans to follow closely in the footsteps of the colossus Tesla, currently valued at around $846 billion. The American company, the flagship of visionary tycoon Elon Musk's empire, went public very early on, speculating massively on its projects and thus managing to increase its capital exponentially.

For Porsche, the ambition is to exceed 100 billion dollars, a goal that seems easy, since investors will tend to trust its solidity.  The capital raised by the IPO will largely be invested in the process of ecological transition, to which all car producers are now subject.

The company is betting on its electric models, the Taycan saloon and the new SUVs, as well as the sporty 911 Turbo e-Hybrid models. Several major investors are closely following the operation: among them, the sovereign investment fund of the Emirate of Qatar, Bernard Arnault, chairman of the luxury group LVMH, and the billionaire Dietrich Mateschitz, owner of the Red Bull drinks brand.

The legendary company, founded in 1931 by Ferdinand Porsche, had already unveiled its IPO project last February, on the same day that the conflict between Russia and Ukraine began. The international crisis that followed the outbreak of hostilities changed the agenda and Porsche had to postpone the operation.  

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