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  • Writer's pictureICMSS

Volkswagen Steering Porsche Toward Blockbuster IPO

One of the world's leading automotive brands, Volkswagen, stated on Monday (9/4) that it will take Porsche public. In comparison to other Volkswagen-owned brands such as Audi, Bentley, Bugatti, and Lamborghini, Porsche has been making the most profits ever since they were acquired and merged back in 2011. Porsche's luxury brand image can conceivably grant higher prices and potentially lead to one of the biggest IPO that Europe has ever seen. Porsche's operating profit jumped 22% in the first half of 2022, in contrast to an 8% fall at the Volkswagen brand which is more mass market-oriented. While the Porsche brand is strong, market capitalizations of other luxury carmakers such as Aston Martin and Ferrari have fallen. At the high end of estimates, the IPO could be among the most grande in German history and the biggest in Europe since 1999, according to Refinitiv data Qatar will be a cornerstone investor planning to commit 4.99% stake in the newly listed company. Furthermore, acting as Joint Global Coordinators in connection with the proposed transaction includes BofA Securities, Citigroup, Goldman Sachs and many other investment banks will be acting as Joint Bookrunners.

The upcoming listing that will be conducted in the Frankfurt Stock Exchange have raised several concerns among investors. With European stock markets in freefall, inflation at an all-time high, and the on-going current energy standoff between Europe and Russia this send luxurious brands stocks such as Ferra