After years of speculation and rumors, Porsche is finally going public with a potential valuation of $75 billion.
Trading is due to start in the Frankfurt Stock Exchange on September 29 with a share price estimated between $76.50 and $82.50.
READ MORE: Volkswagen to take on Tesla with its first fully-electric sedan
Volkswagen initially targeted an IPO of $85 billion for Porsche but the company had to revise it due to investors’ concerns over the current financial climate in the U.S. and Europe.
On one hand, Porsche has been selling more vehicles than ever in recent years despite production woes and Covid lockdowns.
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On the other hand, Europe is facing yet more financial issues amid energy crisis, high inflation and a weak euro.
To add fuel to the fire, the FED is poised to raise interest rates for the third time this year.
This will inevitably shake the markets again as some people refuse to use the R-word: recession.
If the IPO goes ahead as planned, Porsche will debut in the stock market as the fifth largest car company by market evaluation after Tesla, Toyota, BYD and VW itself.
Speaking of which, Volkswagen is aiming to raise at least $9.4 billion from the share sale.
The funds will be invested in software development and electric vehicles, a priority for the brand.
Ever since inadvertently kick-starting the electric revolution with the (in)famous ‘Dieselgate‘, the German giant has been at the forefront of EV production.
Now, every brand under VW’s wing is either making electric vehicles (Audi, VW, Seat, Škoda, Cupra) or planning to (Bentley, Lamborghini).
The company also facilitated the Bugatti-Rimac deal but, ironically, Bugatti is the only VW brand that’s unlikely to jump on the EV bandwagon anytime soon.
Mate Rimac, founder of Rimac and current CEO of Bugatti-Rimac, has recently said he wants the next Bugatti to have a brand-new combustion engine.
You can read all about his ‘heated’ discussion with the head of VW and Porsche here.
