What you need to know about the Porsche IPO

Investing

Volkswagen’s decision to press ahead with the IPO of Porsche is perceived as a one-off deal and success is closely linked to the appeal of its brand.
Key Takeaways
  • Volkswagen Group is planning an initial public offering for Porsche
  • The goal of the IPO is a US$70 billion to US$75 billion valuation
  • This would make it Germany’s second-largest IPO in history, as well as Europe’s third-largest
Volkswagen's decision to press ahead with the IPO of Porsche is perceived as a one-off deal whose success is closely linked to the appeal of its brand.
Image source: Kian Eriksen/Total 911 Magazine/Future via Getty Images

Porsche’s landmark listing is defying market turmoil giving a welcome boost to a battered pipeline of share sales, Reuters reports, but the deal is unlikely to open the floodgates, bankers and analysts say, with European listings facing their worst year since 2009.

1996 Porsche 993 Turbo
1996 Porsche 993 Turbo. Artist: Unknown. Photo by National Motor Museum/Heritage Images/Getty Images

As market volatility persists amid Europe’s energy crisis and worsening economic forecasts, companies are holding off on their plans to go public.

Volkswagen’s decision to press ahead with the IPO of Porsche is perceived as a one-off deal whose success is closely linked to the appeal of its brand.

Watch the forbes.com video to find out more:

Porsche Going Public – Why VW Wants An IPO For The Luxury Sports Car Maker

2020 Chicago Auto Show Media Preview - Day 2
2020 Porsche 718 Cayman GT4 is on display at the 112th Annual Chicago Auto Show at McCormick Place in Chicago, Illinois on February 7, 2020. | Image source: Raymond Boyd/Getty Images