Porsche IPO Set for The 4th Quarter 2022
Porsche IPO Set for The 4th Quarter 2022: Simultaneously, Porsche has long desired a taste of Ferrari’s wizardry. It intends to enter the stock market through an initial public offering, as Ferrari did to with great success in 2015. Ferrari’s value has risen from US$10 billion to around US$38 billion since then, despite the fact that the company produces fewer than 12,000 cars per year. It has huge profit margins.
Volkswagen, the second-largest automaker in the world based on sales volumes, owns Porsche. They also own Audi, Skoda, Lamborghini, and Bentley, as well as Ducati motorbikes, and it produces over 300,000 cars annually, which is 25 times more than Ferrari.
Given Volkswagen’s intricate ownership structure, the IPO is challenging. Through Porsche Automobil Holding SE, their publicly traded holding company, the Porsche and Pich families control 53% of Volkswagen’s voting shares. Porsche is owned by Volkswagen, which acquired the sports car manufacturer through a reverse takeover in 2012 and combined the two businesses.
Could Porsche be encroaching on Tesla’s turf? Now, fully electric vehicles account for 13% of the company’s sales, and the Porsche Taycan outsells Tesla’s top-end Model S by a factor of two. The Taycan outsells the legendary Porsche 911, the rear-engine thoroughbred that put Porsche on the map as a hot sports car manufacturer in the 1960s with over a million been sold.
Porsche could displace Tesla at the top end of the electric-car industry if it were a standalone entity with its own stock market listing, large profits, and formidable engineering and manufacturing capabilities.
Investors, meanwhile, have mixed feelings about Oliver Blume’s dual management of Volkswagen and Porsche. Volkswagen also hopes to increase its own activity with Porsche’s listing in Frankfurt. In comparison to its rivals, the German automaker’s stock market value is modest. While its American rival Tesla, the industry leader in electric vehicles, is currently valued at over 900 billion dollars, the first European manufacturer is only 87 billion euros (923 billion euros). Volkswagen must also make investments. By 2030, the business hopes to create more than 80% of all-electric vehicles. According to Ferdinand Dudenhöffer, “Six giga-usines de batteries électriques have been proposed in Europe for one billion euros apiece.” The manufacturer wants to improve its mobility services, which requires it to invest heavily in on-board software development (thus the purchase of the rental company, Europcar.
Porsche reported significant revenue increase in the first quarter of this year, and the business is aiming for group revenues of roughly 38 to 39 billion euros and a return on sales of 17 to 18 percent. Porsche plans to provide an Automotive net cash flow margin of roughly 12.5 to 14% while achieving group revenue growth over the medium term at a rate of approximately 7 to 8 percent compound average growth.
The remaining funds will be used to help with the expensive transition to electric vehicles and battery technology, according to Volkswagen AG, which said it plans to use the earnings to pay a one-time special dividend to shareholders.