Porsche to IPO in landmark listing Thursday

Porsche to IPO in landmark listing Thursday

Porsche plans to go public on Thursday at a $73 billion valuation, catapulting the company to become the world’s fourth-most valuable automaker and netting billions of dollars for parent company Volkswagen to advance its drive toward electric vehicles.

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The initial public offering for Porsche AG on the Frankfurt Stock Exchange values the brand at $79 a share in one of Europe’s largest-ever listings. Volkswagen, Europe’s biggest carmaker, is poised to receive more than $9 billion for its stake, positioning it to challenge Tesla for the EV crown.

The juggernaut is poised to overtake Tesla in EV sales in 2024, according to an analysis by Bloomberg Intelligence. Volkswagen set a goal for EVs to comprise a quarter of its sales by 2026, assisted by the launch 16 battery-electric models, including the Audi A4 e-tron, Audi A6 e-tron and Volkswagen ID. Buzz van. Proceeds from the IPO could help fund the $50 billion Volkswagen plans to invest in electrification over the next five years.

The robust share price indicates investor confidence in Porsche, poised to become the fourth-largest automotive company by valuation after Volkswagen, Tesla and Toyota, even as the economy slumps toward a recession. The offering fetched a high share price given that the company issued only 911 million shares, a nod to its flagship model.

Still, Porsche generates close to a quarter of Volkswagen’s operating profit, a potential loss for VW as rising costs, supply-chain constraints and inflation begin to plague the industry and threaten to clip sales.

Porsche has made several moves toward going green, including investing in efuels, building a network of Porsche-branded charging stations in Europe and taking its iconic Porsche 718 roadster electric by 2025. Its Taycan EV has eclipsed the 911 in sales, fueling Porsche’s plans to electrify 80% of its portfolio by 2030.

Source @TechCrunch

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