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.
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