The IPO drought is about to break with Porsche set to raise $9.4 billion in its public debut

Plus a Porsche Cayenne (92,000 euros), a Range Rover (50,000), a Mercedes-Benz ML (70,000), a BMW 7 Series with Alpina finish (155,000) …

Luxury car maker Porsche is set to go public in Europe later this month at a valuation of up to $75 billion.
Parent-company Volkswagen is selling part of its stake in the company and could raise nearly $10 billion from the sale.
The debut of Porsche will help break a nearly year-long drought in the IPO market as investors remain defensive.

Porsche is set to go public later this month at a valuation of up to $75.1 billion in what could be Europe’s third-biggest IPO ever and its largest in more than a decade.

The public debut of the luxury car maker is being facilitated by its parent company, Volkswagen, which is set to receive nearly $10 billion in proceeds from the IPO after it sells some of its stake. 

The German auto giant, the world’s second-largest car company by volume, plans to use the proceeds to fund its ambitious electric vehicle ambitions. The company could also use some of the IPO proceeds to pay a special dividend to its investors in early 2023, according to Reuters.

Porsche had initially been targeting a valuation of up to $85 billion, but has since lowered its targeted valuation range to between $70.1 billion to $75.1 billion. 

Porsche’s public debut will help break an ongoing drought in the IPO market, which has been devastated by a rolling bear market in stocks amid concerns of high inflation, soaring energy prices, and a potential economic recession.

The US IPO market has suffered one of its longest stretches of minimal debuts since the unraveling of the dot-com bubble about 20 years ago. But it’s the same story globally. According to data from Bloomberg, the global IPO market has raised …read more

Source:: Businessinsider

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