Despite inflation and a tumultuous stock market, one high-performance car manufacturer is ready to take the plunge with an IPO.
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Porsche, a subsidiary of Volkswagen Group, plans to go public in the coming weeks, per Reuters, with an estimated valuation between $60 billion and $85 billion.
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An IPO at the high end of that expected range would make it the largest in German history and the biggest in Europe since 1999, according to Refinitiv data. The staggering listing would come amid record inflation and a Russia-Europe energy deadlock that’s pushed stock prices down significantly.
Still, an IPO isn’t certain. “It would be the technical go-ahead, nothing more,” a source informed Reuters. “It’s paving the way, but this would not guarantee that the stock market bell will ring in the end.”
A recent leadership change could also complicate matters, per CNN. The company suddenly announced the replacement of former chairman Herbert Diess in July, declining to give a reason, and Oliver Blume stepped in as CEO on September 1.
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Additionally, although Volkswagen has its eyes on the electric market (doubling its battery EV sales in 2021 to 453,000 worldwide), it’s still lagging behind Toyota’s electric vehicle sales, CNN reported.
Volkswagen Group is down nearly 30% year over year.