As interest builds in Porsche’s initial public offering (IPO), the company says that it wants the stock market listing to happen as soon as possible.
Key Details
- The luxury car company’s IPO is slated to happen sometime in late September or early October. Comments from Porsche finance chief Lutz Meschke hint that the date may be sooner rather than later.
- Around 12.5% of Porsche’s capital will be available to the public.
- The share sale will value Porsche at around $84 billion, almost as much as the parent company Volkswagen.
Why it’s news
Porsche’s IPO will give the Porsche family an opportunity to retake control of the company after losing authority in 2009.
In 2005, Porsche began implementing a plan to gradually take over its competitor, Volkswagen. However in the economic turmoil of 2009, Volkswagen flipped the script and took over the smaller company. The complicated deal resulted in the Porsche family still maintaining some control over their original car company.
Porsche is an increasingly successful company, earning $32.81 billion in sales in 2021, reports The Wall Street Journal.
Backing up a bit
IPOs have suffered serious setbacks this year, but that could change before long.
This fall, IPOs are expected to make a comeback, but the market won’t be nearly as robust as last year, reports Barron’s.
So far this year, the average IPO has been around $85 million, a paltry number compared to the average last year—$359 million. Companies are expected to once again start listing larger IPOs.
IPOs typically follow the stock market, and with the market beginning to recover, IPOs should follow.
While IPOs may recover somewhat during the second half of the year, they still aren’t expected to resemble last year’s market.
