European markets are braced for Porsche’s much-anticipated IPO after it was revealed that Volkswagen would target a valuation of €75 billion on its debut. The IPO of the stock, which lands on the Frankfurt Stock Exchange on Sept. 29, looks set to be a major test for a continent grappling with record-breaking inflation and the outbreak of war between Russia and Ukraine.
With Goldman Sachs, Bank of America, JP Morgan and other leading financial institutions backing Porsche, the company’s debut is sure to be closely scrutinized across Europe for signs of renewed investor confidence.
Despite widespread market volatility, Porsche’s push to go public coincides with the growing ambitions of its parent company, the Volkswagen Group, to expand into the electric vehicle space. After the successful market launch of the ID.4 EV and Porsche Taycan models, an IPO should be an excellent opportunity to secure financing for the expansion of the production of further electric vehicles.
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With Porsche’s sales nearly tripling in 10 years – despite the pandemic conditions of 2020 and 2021 – the prospect of an IPO for a company with sales in excess of €30 billion should be enticing for many investors.
“Porsche’s IPO could be one of the most interesting offerings ever,” said Maxim Manturov, Head of Investment Advisory at Freedom Finance Europe. “Unofficial information suggests that Porsche has already attracted the attention of investors and has received pre-orders with valuations ranging from 60 to 85 billion euros. Prominent investors including T Rowe Price Group Inc and Qatar Investment Authority have already expressed interest in subscribing for an IPO in this valuation range.
Also, Porsche’s recent performance could help the company score such a high score as the company is one of Volkswagen’s most important brands. In 2021, the company delivered 301,915,000 vehicles to the market compared to…
