Porsche IPO Sends Shockwaves, 911 Million Share Available
By Caelan Webster, Staff Reporter, DAA Daily, The Pawprint
Porsche announced that their upcoming IPO (Initial Public Offering of a stock) was poised to raise 9.4 billion dollars for the company. This would make it the largest European IPO in over ten years, and the fifth largest of all time. Knowing the market turmoil we’ve been subjected to the past few months, investors may be surprised at the lofty 70-75 billion Euro valuation of the luxury automotive producer. However, executives at the parent company Volkswagen have shown exceptional confidence in the move, and even stated that Porsche aimed to make 39 billion dollars in revenue this year. To commemorate Porsche’s most iconic model, the 911, there will be 911 million shares of the stock available.
Many have speculated why the IPO would occur during such a volatile market, especially with the uncertainty regarding the future of transport. Some analysts think Porsche may be getting a lower valuation on purpose so that market analysts can classify them as “undervalued”. This could lead to the stock spiking upon release, making the company a lot of money. Others believe it could be a government-funded move to raise money for the European automotive industry. Regardless, with this massive market announcement, many investors will be eager to buy into Porsche as soon as possible.
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