Market conditions aren't exactly favourable right now... but it's not stopping Volkswagen from pushing Porsche's IPO.
👉Background: Volkswagen and Porsche are two prestigious car brands that are deeply intertwined. Technically, Volkswagen is Porsche’s parent company, but Porsche also has a stake in Volkswagen. It's a complicated relationship.
👉 What happened: Volkswagen has released an ‘intention to float, meaning it’s pushing ahead its plan for an IPO for Porsche this year.
👉 What else: The expected valuation of Porsche once public will be somewhere between $88 billion and $124 billion… But the investment community are pretty intrigued by the timing of the deal.
💡When it comes to IPOs, timing is often the secret to its early success… And market conditions ain't exactly favourable right now.
💡You've got European shares spiralling worse than the entire Aussie workforce on a Sunday night. And Russian tension with the whole of the EU is creating major uncertainty.
💡It's no surprise that global IPO volumes are down 46% in the first half of this year compared to last year. But clearly, Porsche and Volkswagen are determined to get the deal done.
Sign up for Flux and join 100,000 members of the Flux family