Porsche's strong premium capabilities are destined to make this IPO full of highlights.
Recently, the Volkswagen Group released a statement on its official website saying that it is discussing a potential IPO with Porsche Automotive Holdings. The industry believes that if this happens, it could become one of the largest IPOs in European history.
Herbert Diess, CEO of Volkswagen Group, said that the Volkswagen Group plans to dominate the field of zero emissions and autonomous driving, and the Porsche IPO will provide us with greater flexibility for future development, further accelerating the pace of transformation, while Porsche can also gain more entrepreneurial freedom and benefit from the synergies of the group.
From the perspective of Volkswagen's strategic planning, the meaning of this sentence translated into the vernacular is: the spin-off of Porsche listing can raise more funds for Volkswagen to promote its own electrification process, and it can also support the development of new technologies such as driverless cars and the creation of new businesses for the production of electric vehicle batteries.
According to previous foreign media reports, if Volkswagen decides to support Porsche's initial public offering (IPO), it may seek to list 25% of Porsche's shares.
In fact, there are early signs of Porsche's split listing. As early as last year, Reuters quoted people familiar with the matter as saying that Volkswagen Group was promoting the spin-off and independent listing of its luxury brand Porsche to raise funds and help the group transform to intelligence and electrification. The German "Business Daily" and the German Manager Magazine have also reported on this matter before.
Earlier, Porsche CFO Maxger first proposed the idea of an independent IPO in 2018, saying the move could unlock value and replicate Ferrari's success stories from years ago. However, the listing review at that time was not supported by the Volkswagen Group.
Nowadays, under the "psychological struggle" of several years, the public has decided to list Porsche independently, which is also reasonable, and I think there are two main reasons:
First, there is a real shortage of money. 2022 can be said to be the first year of Volkswagen's formal full electrification, and Diess's resoluteness can be seen from the struggle with the union, and the "elephant turn" is not to say that it can be done, it is not at that risk of sudden death at any time, and it needs a considerable amount of financial support. Porsche as a luxury brand, has been the cash cow of the Volkswagen Group, now the sales performance and performance is at a historic high, a strong premium ability, is destined to make the capital market for Porsche's prospects are greatly optimistic, so now let go is the best choice.
Two: Porsche can play more freely. Nowadays, Porsche has gained a high degree of popularity and recognition in the market, and it is better to fly far than to hold it in your hands. It's like flying a kite, now that the kite has been put up, all the public has to do is not let the kite fall, and let it fly. Of course, Volkswagen did not put too loose, after all, only 25% of the shares were listed.
Some analysts said that according to the predicted valuation of Porsche's IPO, it means that once Porsche is successfully listed independently, it is almost equivalent to recreating a public.