The much-awaited Porsche IPO will make its debut in the fourth quarter of this year. People familiar with the matter have said that parties interested in buying the Porsche IPO might be able to do so as early as September, if all goes to plan.
Chief Financial Officer Arno Antlitz has repeatedly mentioned that the German carmaker’s shift to electric vehicles is costly. The Porsche IPO-generated funds will help make the transition smoother and ease some of its worries. In the first quarter of 2022, Porsche posted record profits, despite a difficult global market.
Is VW going to sell Porsche?
In an interview with Automotive News Europe, Antlitz confirmed that the Volkswagen Porsche IPO will move ahead as planned as the luxury automaker has been “resilient over the years to market disruptions, including the recent supply chain turmoil.” Meanwhile, the Volkswagen group, which controls Porsche since 2012, has also invested heavily in supply chains for electric vehicles (EVs) “for competitive reasons.”
The automotive industry has had a tough few years with supply chain disruptions, semiconductor chip shortages, and economic and geopolitical instability. Volkswagen has plans in place to become the largest EV manufacturer by 2025, keeping with its carbon-neutral goals. The Porsche IPO will help accelerate its move towards a carbon-neutral future, as it wants to slowly phase out ICE vehicles. In May, CEO Herbert Diess stated, “Even in a more polarized world, Volkswagen is firmly committed to expanding its global footprint, further driving its transformation into a sustainable and fully digital mobility provider.” By 2030, Porsche wants more than 80% of its car sales to be electric. By buying the Porsche IPO, you will be contributing towards making this vision a reality.
Rumors of a Porsche IPO date have been doing the rounds since late 2021. When news broke that Porsche was exploring a potential $100 billion IPO, Volkswagen saw its preference shares go up by 8.6%, while Porsche SE stocks saw an increase of 8.5%. Experts believe that the Porsche IPO investment will see the carmarker valued at nearly $95 billion. As of early July 2022, the Volkswagen group is valued at $86.57 billion.
Volkswagen has said it plans to split the stock of Porsche AG into ordinary shares and preference shares equally. The Volkswagen Porsche IPO listing is slated to be one of Germany’s biggest IPOs.
Should I invest in Porsche?
Porsche is ready to take aim at more established EV makers like Tesla, and needs funds to be able to do so. In a written statement, the company revealed that it will be focusing on the North American region, especially the United States, in the coming years. They hope to achieve a 10% market share in EVs by 2030. To grow their battery-electric vehicle segment, the automaker plans to have a fleet of over 25 BEV models by the end of the decade. The Volkswagen Group has also committed $7.1 billion to boost its BEV product line-up, R & D, and manufacturing in North America. Also, the group is working on building a dedicated battery cell production site in the US.
It is ramping up its EV strategy and broke ground in Germany on July 7 to build a battery factory. The venture is one of the six battery plants the group has planned across Europe.
Although Porsche did exceptionally well in the first quarter, Volkswagen’s shares have lost more than a third of their value in the last year and underperformed in the global market.
Where to Buy Porsche IPO?
Going public helps companies generate capital quickly and easily. They are also investments that tend to generate good passive income, depending on their stock performance.
So, where to buy the Porsche IPO? To participate in the IPO, an investor must use IPO investing apps or find a brokerage that offers IPO access. IPO stock tends to offer enormous potential for profit, especially on day one. But it can also go the other way, which is why investors must do thorough research before buying Porsche IPO.
No trader or analyst will give a definite answer to the all-consuming question—is it worth buying into the Porsche IPO?
Porsche has proved itself in its commitment to EVs, but as it plans to take on established players like Tesla, it will need to flawlessly execute its strategy and utilize the capital generated wisely. The VW Group has revealed that it plans to pay out 49% of total gross proceeds from the listing to shareholders via a special dividend, and the rest will be reinvested in the business.
The only certainty for traders is that the Porsche IPO will take place in the fourth quarter of 2022.The company plans to go public by October 2022. Volkswagen’s Q1 results showed its resilience in a volatile economy, and the company plans to use the momentum to build its transformative EV segment.
