Porsche 911 GT3 RS Front View Head On

Why you should wait for the impending Porsche IPO of 911 million shares

Porsche It will soon offer itself for sale, but this is not a situation where the highest bid takes it all – it is scheduled to go on the stock market and allow the public to buy shares in the company.

We call this process an IPO (Initial Public Offering) and the premium automaker will become a publicly owned business – allowing people outside the company to buy shares and thus a token stake in its ownership.

According to the BBC, this will likely be the second largest IPO in German history And the third largest company in Europe.

The owners of Porsche are the Volkswagen Group, which includes the European car brands Seat, Skoda, Volkswagen, Audi, Porsche, Lamborghini, Bentley and others.

We take an overview of some of the details and why this is a historic moment in car history, with potential benefits for anyone looking to invest in a home Iconic Porsche 911.

Volkswagen wants to remember the Porsche 911 with 911 million shares

Porsche’s parent company told investors it plans to set share prices at around €76.50 to €82.50, enough for a stock market valuation of €70-80 billion.

As of September 21, 2022, the euro and the dollar are closely aligned with 1 euro equal to $0.99.

The 911 million shares, divided into 455 million preferred shares and 455 million common shares, will be available for trading as of September 29 this year.

Porsche is likely to raise about $9 billion from the sale, much of which should be redirected to electric vehicle development and other research and development.

Initial public offerings are initial public offerings and potential investors may need to purchase shares through a broker that allows the investor to purchase shares, sometimes by meeting certain criteria, and even then, prices cannot be guaranteed to be similar to the IPO rate.

Related: This is how EV Maker Rivian raised $11.9 billion from its IPO

It’s time to buy Porsche shares

Porsche’s stock market capitalization of $70 billion has already been called into question by some sources such as HSCB which indicates a lower value of around $45-57 billion – for reference, Volkswagen has a market value of around $89 billion, and General Motors in the US. More than 58 billion dollars.

There are potential risks ahead, in addition to the capital increase for Porsche, as high interest rates, inflation and other concerns in Europe such as the ongoing energy crisis are on the rise.

According to Reuters who also have an article on the IPOExaggerated valuation could pose a problem as Porsche needs to avoid “stifling its start in public life by setting very high standards – especially in current market conditions,” said Joshua Warner, financial markets analyst at City Index.

Creativity overnight is a “great value” but in the long run this may make sense for the company as it looks for funds to remain competitive and at the forefront of innovation in a changing world.

It might also make sense for people with the means to make money for a long-term investment even with the risk of lower stock prices in the future, the company’s history speaks for itself.

Others would say that the game is changing and there is nothing certain about the climate crisis and unstable geopolitical situations raising problems like those seen in Eastern Europe recently, leading to the energy crisis.

RELATED: Rivian’s IPO Reveals A Billion Dollar Loss And Other Secrets

Porsche: Always innovating and sticking to its core values

You could argue that Porsche has veered from its values ​​in the last two decades with the advent of SUVs, crossovers and electric cars in its portfolio, but those who resist changing strategy nowadays risk being left behind.

As such, you could argue that Porsche is proving that its iconic blend of style, performance and prestige inherent in the brand’s previous cars can also be intrinsic to models like the Cross Macan and Taycan BEV.

The German brand from Stuttgart is generally seen as being at the forefront of technology; They’ve embraced turbocharging since the 1974 Porsche 911 Turbo (930) and have made it viable in today’s miniature engines of its modern sports cars.

Presently, the company has demonstrated its ability to create an all-electric sports car in the shape of the Taycan, and it is researching how to produce and use synthetic fuels to help internal combustion and hybrid cars run sustainably which is good news for gearheads. .

Volkswagen is the big parent of some great brands

European budget brands such as Seat and Škoda are relatively unknown across the Pacific with a few exceptions; Volkswagen calls them the “large size brands” and they are generally priced inferior to other brands like Volkswagen and Audi.

Above Volkswagen in the brand hierarchy there is Audi, and other premium brands such as Lamborghini and Porsche.

Volkswagen, like other conglomerates like General Motors, shares platforms, engines, drivetrains and technology between the brands, so buying a cheaper seat means you inherit the technology and engineering also used in Volkswagen and Audi cars.

The German group is giant and low-priced brands like Seat and Skoda are omnipresent in Europe and other parts of the world, strengthening their presence in many different markets.

For the rest of us who don’t own a Porsche, owning one of the 911 million shares probably makes up for not owning one of the most popular cars ever — especially if values ​​rise over time and can make you enough cash to finish even buying your own Porsche 911 in the coming decades. .

Sources: BBC (BBC), Reuters

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