Guess How Many Shares Will Be Available for Porsche's IPO
VW gave a wink to Porsche’s most beloved car in its initial-public-offering plans for the luxury car brand.
Written by Andrew Koole
Reviewed by Kathleen Flear
Volkswagen
already announced its plans to introduce Porsche to the stock market
back in February, but few details about the IPO bid were shared until recently. On September 15, the German auto giant announced how many shares they would offer the public, and even a novice Porsche fan would chuckle at the number—911 million.
Jerry
, your car insurance super app, kept a close eye on VW’s stock exchange plans for Porsche over the last few days to help keep you informed on the expectation being placed on the legendary sports car brand. Porsche shares explained
A lot has changed at Volkswagen since it first informed the world about its plans for a public offering of Porsche shares. Herbert Diess, the company’s CEO, was ousted. Former Porsche CEO Oliver Blume replaced him on September 1. But the Porsche IPO plans remain intact.
Reuters
says the 911 million shares will be split in half, with 455.5 million being offered as preferred shares (the type bought by investors to make money) and 455.5 million entering the market as ordinary shares (the type of share that gives voting rights to its holder).Porsche SE, the holding company of the brand founder’s family that owns 51% of VW’s voting shares, already committed to buying 25% of the ordinary shares of Porsche, plus 7.5% of the preferred shares.
The New York Times
says the family could end up trading some of its VW shares to win control of its namesake, which continues to sit under Volkswagen Group and supplies the parent company with a third of its revenue.Why Porsche is going public now
Volkswagen is already a publicly traded company, but its reason for setting Porsche on its own course is one you probably already guessed—money.
As previously noted, Porsche generates plenty of income for itself and VW. But it also has a very expensive future ahead of itself as it transitions away from internal combustion engines (ICE) and toward a fully electric lineup.
The luxury brand is well on its way in the shift to EVs, with its electric SUV, the Taycan, already outselling the classic 911 and two more models—the Macan and Panamera—in the wings.
But it has a long way to go before 80% of its sales will be EVs, which it has already committed to doing by 2030. Drawing investors through an IPO will help fund that goal.
Cost to own a Porsche EV
Porsche has a lot of changes planned, but shifting away from the luxury market is not one of them. The Taycan, Porsche’s only all-electric model available so far, starts at just over $84,000. The Macan and Panamera will likely have similar or higher MSRPs.
Car insurance
for a Porsche isn’t cheap either. Full coverage for a vehicle from the brand averages out to over $2,900 a year. But you can find savings on coverage by shopping with Jerry. Jerry is your ultra-talented car insurance broker for life. No need to sit across from him at a desk: Jerry is an app! It takes less than a minute to sign up, and you’ll be presented with competitive rates from dozens of top providers. Don’t lose coverage—find savings with Jerry.
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