Porsche announces its initial public offering (IPO) and will list 25% of its company’s shares on the Frankfurt Stock Exchange. If you own this German-badged car, the chances are you can own more than just its thrilling cars. According to Porsche, the IPO should come as early as possibly expected in September or early October. The upcoming IPO will give the company an increased push or “increased entrepreneurial independence.” according to the announcement. Pat of the VW Group, Porsche will terminate its profit-and-loss transfer agreement with the Volkswagen Group.
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This means that the shareholders won’t be able to elect the board directors as the stock will be non-voting preferred shares. The public offer will be available for Germany, Austria, Spain, Italy, and Switzerland. The company also plans for a 50% dividend payout based on its profits after taxes. The dividend paid to the shareholders will be directly related to the company’s net income. Porsche estimates between 17-18% sales return for the 2022 year and with the long-term goal, the returns could grow as much as 20%. The result shows an efficient run of the company with higher numbers of returns which is good.
“This is a historic moment for Porsche. We believe an IPO would open up a new chapter for us with increased independence as one of the world’s most successful sports car manufacturers,” said Porsche Chairman Oliver Blume in the IPO announcement.
The German automaker projects 80% of its sales to be EVs before 2030 after the company goes full electric. The EVs include the Macan EV, Second-gen Taycan 7-Seater, with an electric Panamera in development and expected to come later this decade. We’ll have to wait till the Porsche IPO goes official after the announcement and see how it goes.