Porsche IPO Could Be One Of The Biggest In German History

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VW is still hell-bent on taking Porsche public, and it's been valued for big bucks.

The Volkswagen Group is going ahead with its plan to take Porsche public in the fourth quarter of this year.

In a recent interview with Automotive News Europe, VW's chief financial officer, Arno Antlitz, said it's going ahead with its plan to list Porsche because it has proved to be "resilient over the years to market disruptions including the recent supply chain turmoil."

"There's still capital out there, and there is a lot of skepticism about investing capital in technology companies, in new ventures," he said. "Porsche, on the other hand, is very solid."

We think the main reason is Porsche's strong line-up of cars, with the Cayenne being the main driving force behind sales.

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It remains risky considering that IPOs have slowed down due to market conditions. The automotive industry currently faces several problems, such as a shortage of rare earth materials, the ongoing semiconductor chip shortage, and the ongoing war in Ukraine.

Other companies are currently holding out for better market conditions. To provide some perspective, Rivian went public on 10 November last year before the Ukraine invasion. It was valued at $77 billion, placing it in the same sphere as GM and Ford. It also netted Rivian a decent $12 billion, which is why VW is keen to do the same with Porsche.

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The Porsche IPO is expected to be one of the biggest in German history. According to people familiar with the situation, Porsche could be worth as much as $95 billion. If that turns out to be accurate, Porsche would instantly become nearly as valuable as the Volkswagen Group. VAG is currently valued at $105 billion.

Porsche would also be the world's fifth most valuable automotive company, behind BYD and in front of Daimler, Ford, GM, Honda, BMW, and Stellantis.

The Volkswagen Group desperately needs an influx of cash as it takes aim at Tesla, which is by far the most valuable automotive company in the world. It's pushing hard on the EV front and must invest heavily in new factories to reach the same output capacity as Tesla.

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Source Credits: Automotive News Europe

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