Porsche’s initial public offering (IPO) will likely take place at the high end of the current valuation range.
- Porsche will be closing the offer period on September 28, having opened stock to investors from Germany, Austria, France, Italy, Spain, and Switzerland.
- The shares are being marketed between $73.46 to $79.22, which values Porsche at over $72 billion.
- “Volkswagen AG is likely to price the 9.4 billion-euro ($9.1 billion) initial public offering of sports-car maker Porsche AG at the top end of an initial range, demonstrating the depth of demand for its share sale,” says Bloomberg.
- “The company is expected to set the final IPO offer price after the order book closes Wednesday.”
- Last Tuesday, the stock was opened and exceeded investor expectations, covering the full $94 billion public offering.
- Porsche says it aims for a listing on the Frankfurt stock exchange on Thursday, September 29.
Why it’s news
Exceeded expectations are good news for Porsche, which was hoping to raise capital through the sale.
“Porsche’s listing is injecting fresh life into an IPO market that’s been shut for most of the year with investors spooked by rising inflation, interest rates, and the threat of a global recession,” says Bloomberg.
As we previously reported, Volkswagen announced in early September that it would be hosting an initial public offering on Porsche stock. Analysts estimated it could value Porches between $59.8 to $84.6 billion. Only 12.5% of IPO shares were to become available to investors.
The increased capital for VW could be a valuable asset as the global economy adapts automotive technology to the demands of the Green Economy. The sale could become a major factor in pushing forward the auto manufacturer’s goals of pushing more electric and self-driving cars.
Like many automakers, Porsche is working to adapt its line of cars to emissions-free models within the next two decades.
The IPO also gives the Porsche family an opportunity to retake control of the company after losing authority in 2009.