Porsche IPO: Stock will trade separately as Volkswagen takes the luxury car brand public

 

By Michael Grothaus

September 06, 2022

Volkswagen has announced that it will move ahead with the initial public offering of one of its (and the world’s) most iconic car brands: Porsche. But while the 91-year-old automotive luxury brand is expected to have one of the largest IPOs of any European company this century, its public offering could face serious headwinds. Here’s what you need to know:

Porsche IPO: Stock will trade separately as Volkswagen takes the luxury car brand public
    What’s happening? Porsche is going public. The car brand is currently owned by German automotive giant Volkswagen AG, and that company has officially announced its “intention to float” Porsche.

    Is the Porsche IPO unexpected? It’s not unexpected, but it is a bit surprising. Back in February, Volkswagen announced that it would examine whether taking Porsche public was feasible. With Monday’s announcement, the company announced it would move ahead with an IPO.

    So what’s surprising about it? Since Volkswagen announced its plans to examine whether to take Porsche public in February, the world has changed a lot. There’s now a war in Europe, which has sent energy prices spiraling. That in turn has only led to more rampant inflation. These types of events normally depress markets–so moving ahead with what could be one of Europe’s biggest IPOs ever at this time is something some industry watchers didn’t expect Volkswagen to do.

    What date is the Porsche IPO? Volkswagen hasn’t announced an exact date yet. But the company expects it to take place in mere weeks. Volkswagen says the Porsche IPO will happen in late September or early October.

    What will Porsche’s stock ticker be? That’s unknown at this time.

    What market will Porsche trade on? It won’t be on any U.S. stock exchanges. Porsche stock will trade on the Frankfurt Stock Exchange in Germany.

    What is Porsche valued at? Quite a lot. Reuters says that the Porsche IPO will give the brand a valuation of between $60 million and $80 million, potentially making it one of the largest IPOs in Europe since the 1990s.

    Will the Porsche IPO go ahead? Volkswagen’s announcement seems to suggest so, but it is caveated with one thing: The company says the Porsche IPO is “subject to further capital market developments.” What does that mean? Essentially, if the economy tanks even further between now and the IPO date, Volkswagen could decide to postpone the IPO or scrap it entirely.
 

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