There has been a very important development regarding Porsche, one of the important names of the automobile world. It was announced that the company, which continues its activities within Volkswagen, will be offered to the public. According to the statements made by Volkswagen, 25 percent of Porsche’s non-voting preferred shares will be offered to the public and will begin to be traded on the stock exchanges.
In the statements made by Volkswagen, it was stated that the public offering will start with the Frankfurt Stock Exchange and will spread to different European countries in the process. The public offering process, which is planned to start as of the end of September or the beginning of October, is planned to be completed by the end of the year.
Porsche split in two for IPO!
In the official statements, it was stated that structural reforms were made for the public offering. In this context; Porsche’s capital was first split in two. 25 percent of the preferred shares created for the public offering were purchased. This is the part of Porsche that will enter the stock market.
Volkswagen has taken a huge risk: Why?
As a matter of fact; Porsche’s IPO process was first mentioned at the beginning of 2022. Volkswagen said in a statement at that time that this would be possible. But at the beginning of 2022, there was a global sense of spring. COVID-19 had generally begun to end, economies were booming, and people’s hopes had risen. Now there is the Ukraine-War, and this war can spread to Europe at any moment. When we include the energy crisis, according to many economists, Volkswagen has taken a very serious risk. The timing is not at all suitable for an IPO.
But that’s not the case, according to Reuters. According to a news service, Porsche’s IPO will give the company a valuation of between $60 billion and $80 billion, making it one of the largest IPOs in Europe since the 1990s. Time will tell whether the economists or Reuters will be right.
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