Porsche will soon offer itself for sale, but this isn’t a highest-bidder-takes-all situation – it is set to get floated on the stock market and allow the public to buy shares in the company.

We call this process an IPO (Initial Public Offering) and the premium automaker will become a publicly-owned company – allowing people outside the company to buy shares and thus a symbolic stake in its ownership.

According to the BBC, this will potentially be the second-largest IPO in Germany’s history and the third largest in Europe.

The owners of Porsche are the Volkswagen Group which includes European car brands Seat, Škoda, Volkswagen, Audi, Porsche, Lamborghini, Bentley and more.

We take a broad overview of some of the details and why this is a historical moment in car history, with potential benefits for anyone looking to invest into the home of the iconic Porsche 911.

Volkswagen Wants Us To Remember The Porsche 911 With 911 Million Shares

2022 Porsche 911 GT3 RS Weissach - Rear
Porsche

Porsche’s parent company said to investors that it plans to set share prices at around €76.50 to €82.50, enough for a €70-80 billion stock market valuation.

As of September 21st 2022 the euro and dollar are closely aligned in value with €1 equal to $0.99.

The 911 million shares, divided into 455 million preferred shares and 455 million normal shares, will be available for trading from 29th September of this year.

Porsche is likely to raise around $9 billion from the sale, a substantial part of which should get funneled back into the development of electric vehicles and other research and development.

IPO’s are initial public offerings and potential investors may need to buy shares via a broker who allows the investor to buy shares, sometimes by satisfying certain criteria, and even then, the prices are not guaranteed to be the same as the IPO rate.

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It’s The Right Time To Buy Porsche Shares

2022 Porsche 911 GT3 RS Weissach - Front
Porsche

Porsche’s $70 billion stock market value has already gotten called into question by some sources such as HSCB who suggest a lower value of around $45-57 billion – for reference, Volkswagen has a market value of around $89 billion, and General Motors in the US is at more than $58 billion.

There are potential pitfalls ahead, as well as raised capital for Porsche, as rising interest rates, inflation and other concerns are building in Europe like the ongoing energy crisis.

According to Reuters who also have an article on the IPO, Joshua Warner - Financial Markets Analyst at City Index – said a hefty valuation could pose a problem as Porsche needed to avoid “stifling its start to public life by setting the bar too high - especially in current market conditions”.

It is a ‘lot of value to get created overnight’ but in the long-term this could make sense for the company as it searches for funds to remain competitive and at the forefront of innovation in a changing world.

It could also make sense for people with the means to cash in now for long-term investment as even with the risk of declining future share prices, the company’s history speaks for itself.

Others may say that the game is changing and that nothing is certain in the climate crisis and with unstable geopolitical situations sparking problems like those seen in Eastern Europe recently, leading to the energy crisis.

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Porsche: Always Innovating And Staying True To Its Core Values

Porsche 911 Turbo Type 930
Porsche

You could say that Porsche have strayed from their values in the last couple of decades with the appearance of SUVs, crossovers and electric vehicles in their portfolio, but those who resist changing strategy nowadays risk getting left behind.

As such, you could argue that Porsche are proving that their iconic blend of style, performance and prestige inherent in the marque’s earlier cars can also be intrinsic in models like the Macan crossover and Taycan BEV.

The German brand from Stuttgart is generally seen as being at the forefront of technology; they have embraced turbocharging since the 1974 Porsche 911 Turbo (930) and made it viable in today’s downsized engines for its modern sports cars.

Nowadays, the company has shown-off its ability to create a fully electric sports car in the form of the Taycan, and it is researching how to produce and use synthetic fuels to help internal combustion and hybrid cars run sustainably which is good news for gearheads.

Volkswagen Is The Big Parent To Some Awesome Brands

Seat Cupra Leon Sportstourer 2021 Front
Via: Seat

European budget brands like Seat and Škoda are relatively unknown across the Pacific with some exceptions; Volkswagen calls them ‘high-volume brands’ and are generally priced and situated below other brands like Volkswagen and Audi.

Above Volkswagen in the brand hierarchy there is Audi, and other premium brands like Lamborghini and Porsche.

Volkswagen, like other conglomerates such as General Motors, shares platforms, engines, drivetrains and tech between brands, so buying a cheaper Seat means you are inheriting technology and engineering also used in Volkswagen’s and Audi’s cars.

The German group is a behemoth and the lower-priced brands like Seat and Škoda are ubiquitous in Europe and other parts of the world, cementing its presence in many different markets.

For the rest of us who don’t own a Porsche, perhaps owning one of the 911 million shares would make up for not owning one of the most iconic cars ever – especially if values go up over time and could make you enough cash to end up buying your own Porsche 911 in decades to come.

Sources: BBC (British Broadcasting Corporation), Reuters