Porsche IPO

[Mr.Smith]

Is the Porsche IPO a good idea for the brand in the long term?

IMO the Ferrari IPO diluted the brand. 12 years of 458 variants, every other week with special editions, now an SUV

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[kort]

Is the Porsche IPO a good idea for the brand in the long term?

IMO the Ferrari IPO diluted the brand. 12 years of 458 variants, every other week with special editions, now an SUV

what do you think that an IPO is?

 

[Mr.Smith]

what do you think that an IPO is?

It breaks out Porsche from the VW group which means Porsche will need to show growth in more ways.

 

[W1NGE]

It breaks out Porsche from the VW group which means Porsche will need to show growth in more ways.

Some private equity mob tried to buy Lambo from VW recently and got told to poke it. I imagine that after the prior year shenanigans when Porsche attempted to take over VW (2012) which resulted in VW acquiring Porsche will end with the same response if there is a desire to float off the 'crown jewels'.

IPO hasn't happened with Seat, Bentley, Audi, Skoda, Bugatti, Lamborghini, Ducati, MAN or Scania to date so hard to see why they'd experiment with Porsche first.

On some days I wish Porsche had stayed independent and curtailed the breadth of models if only to keep them as exclusive as they used to be. On other days I think, "don't be so selfish" and let others enjoy the class act that it is.

 

[Mr.Smith]

On some days I wish Porsche had stayed independent and curtailed the breadth of models if only to keep them as exclusive as they used to be. On other days I think, "don't be so selfish" and let others enjoy the class act that it is.

I agree with this. The good part of being under VW was the sharing of R&D which would allow Porsche to focus on being exclusive and higher margin, cash cows.

I'm certain exclusive manufaktur will be even more prominent for Porsche now, but new models and higher volume will be the target. Expect tons of Special edition, limited cars

I see them positioning themselves as an EV brand more for the valuation. I hope that doesn't backfire when market gets back to reality

 

[madeyong]

Maybe things have changed but doesn’t Porsche SE (which is controlled by the Porsche family) have majority voting control of Volkswagen AG? I know it owns only about a 1/3 of the equity in Volkswagen AG but I though it has supervoting shares that give it majority voting control over the whole Volkswagen Group.

 

[Kingske]

Maybe things have changed but doesn’t Porsche SE (which is controlled by the Porsche family) have majority voting control of Volkswagen AG? I know it owns only about a 1/3 of the equity in Volkswagen AG but I though it has supervoting shares that give it majority voting control over the whole Volkswagen Group.

I believe you are right...

 

[W1NGE]

Maybe things have changed but doesn’t Porsche SE (which is controlled by the Porsche family) have majority voting control of Volkswagen AG? I know it owns only about a 1/3 of the equity in Volkswagen AG but I though it has supervoting shares that give it majority voting control over the whole Volkswagen Group.

Indeed (50.7% of VW AG) however that came with the agreement for VW AG Management to take management positions in Porsche SE deliberately so that VW could remain in control and to own Porsche AG. Complicated arrangement but I think VW still rules the roost on what goes down.

 

[Mr.Smith]

Indeed (50.7% of VW AG) however that came with the agreement for VW AG Management to take management positions in Porsche SE deliberately so that VW could remain in control and to own Porsche AG. Complicated arrangement but I think VW still rules the roost on what goes down.

If this is the case, do you think it's better if Porsche goes private instead?

 

[W1NGE]

If this is the case, do you think it's better if Porsche goes private instead?

Not sure and I don't think it likely. The motor industry is a global thing and requires depth and spread - not something Porsche could do independently.

 

[O2TheL]

This debate comes up annually with Ducati.
Not going to happen IMO.
One reason it that Porsche EV can offset other less sustainable brands (Lambo) in the portfolio.

 

[madeyong]

https://insideevs.com/news/553147/vw-group-mulling-porsche-ipo/

Apropos to yesterday’s discussion on this thread. Nothing confirmed. Porsche SE says it’s pure speculation but there are some details.

 

[JimBob]

First I have heard of this.

 

[W1NGE]

https://www.wsj.com/articles/volkswagen-in-advanced-talks-over-porsche-ipo-11645525495

 

[BigBob]

If this is the case, do you think it's better if Porsche goes private instead?

That's kind of what could happen if the FT article* /my understanding of it is correct . The Porsche-Piech family buy 50% of the ordinary shares (i.e. those with voting rights) that will be floated, while VW (whose biggest shareholder is the same family) keeps the rest. Effectively gives control of Porsche-Piech to the family.
FT doesn't seem to like it. Still if you buy some ordinary shares, you'll at least be able to go to the AGM and have a grumble about PCMs and 12 volt batteries!

*FT's article is speculation as to one scenario...

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