Luxury carmaker Porsche is racing towards the IPO finish line, and it looks like they’re going to be happy with the prize. In what could be Europe’s third largest IPO in history, the company is looking at a valuation between 70 and 75 billion euros. This price would surpass the valuation of German competitors like BMW and Mercedes-Benz.
Porsche has been off the public markets for over a decade, after Volkswagen bought the luxury carmaker in 2011. The deal proved to be fruitful for both companies, with Porsche reporting an operating profit of nearly $3.5 billion euros for the first half of 2022.
Porsche’s impressive profit margins are notable, especially given the stock pullbacks for other luxury car makers like Aston Martin and Ferrari. It hasn’t been an easy year for public companies, subject to the highs and lows of the market, and it’s interesting that Volkswagen is eager to drive Porsche straight into the belly of the beast.
Macroeconomic uncertainty has cooled the once-hot IPO game as countless companies around the globe that recently filed to go public have continued to wait on the sidelines. Even Silicon Valley’s finest start-ups like Stripe and Instacart have been waiting in the queue or have opted to tap the private markets in an effort to avoid the public market fragility.
IPO activity dropped sharply in the first half of 2022. According to data from FactSet, 1073 companies IPO’d in 2021, raising $317 billion; in the first half of 2022, the total was just 92 companies, raising just under $9 billion.
Porsche’s listing will dramatically pull these numbers forward and after a year of tough blows to the market, a potentially successful public offering could set the stage for more companies to test demand for new listings. It’s safe to say all eyes will be on Porsche as the company drives up to the global stage.
Learn with titan
Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.
Various Registered Investment Company (“RIC”) products offered by third-party fund families and investment companies are made available on the platform. Certain of these RIC products are offered through Titan Global Technologies LLC. Other RIC products are offered to advisory clients by Titan. Before investing in such RIC products you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Apex Crypto LLC. Apex Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Apex Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Titan Global Technologies LLC. Please ensure that you fully understand the risks involved before trading: www.apexcrypto.com/legal.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at firstname.lastname@example.org. 508 LaGuardia Place NY, NY 10012.
© Copyright 2022 Titan Global Capital Management USA LLC. All Rights Reserved.