Porsche IPO: Investors Should Prepare for Porsche Stock in 2022

Talks of a Porsche IPO are making headlines. The company recently announced it is in advanced talks to list Porsche stock on the stock market. Furthermore, the listing could be one of the biggest IPOs in the world. So, when can investors expect the public debut?…

Porsche IPO: About the Business

Porsche is a German automobile manufacturer. The company has its headquarters in Stuttgart, Germany. Founded in 1931, the company specializes in luxury, high-performance sports cars, SUVs, and sedans. Porsche models include…

  • 718
  • 911
  • Taycan
  • Panamera
  • Macan
  • Cayenne

Volkswagen AG owns Porsche. However, the Porsche is in advanced talks to IPO. The news comes as Volkswagen AG, the company’s largest shareholder, announced it has reached a framework agreement to IPO the company. However, the deal has not finalized. And it still has to reach final approval from both companies’ boards.

Around 34% of Volkswagen’s profits came from Porsche last year. So why is Volkswagen pushing for an IPO? Here are the details…

Porsche Stock Could Reverse Failed Take Over

Volkswagen acquired the luxury brand after Porsche’s failed attempt to take over Volkswagen in 2009. At the time, the Porsche-Piëch family became Volkswagen’s most influential investors through their holding company Porsche SE. Furthermore, the family holds 31.4% equity in Volkswagen and 53% of the carmaker’s voting rights.

The sale would, however, allow Porsche to return to its former glory.  As recently as December, people familiar with the matter said that Porsche SE would consider selling some of its 53% stake in Volkswagen. Moreover, it will free up buying power to allow Porsche SE to acquire Porsche AG shares.

If the IPO takes place, Volkswagen plans to issue Porsche AG ordinary and preferred stock shares. To clarify, ordinary shares have voting rights. And Porsche SE can buy them in a Porsche AG listing. As a result, Porsche could regain the power it lost when its ownership changed.

Porsche IPO Could Fund the Push Toward EV

For years, Europe’s largest automaker has been working to change its corporate structure. Volkswagen is striving to become more flexible. And it hopes to be able to challenge major EV industry players like Tesla. Despite this, the company has not achieved much success. However, the Porsche IPO could change this.

Volkswagen is preparing to list its most valuable asset on the stock market. The company has ambitious plans in the EV space. Furthermore…

 

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