The important dust has settled on the time of Porsche IPO, which has been publicized for a long time.
A few days ago, Volkswagen announced that the Volkswagen Group (hereinafter referred to as "Volkswagen Group") issued a statement that it was discussing the potential IPO plan of its luxury brand Porsche with Porsche holding company. To this end, Volkswagen and Porsche automobile holding company negotiated and reached a framework agreement to lay the foundation for Porsche's potential IPO.
Subsequently, Arno antlitz, the finance officer of Volkswagen, revealed that the Volkswagen Group would release the latest news about the listing planning and progress of Porsche to the market at the end of this summer. Porsche is likely to have an IPO as soon as the fourth quarter of 2022 This also means that Porsche will become another luxury car brand that has completed its IPO after Ferrari, Aston Martin and Volvo.
"profit cow" independent IPO dust settled
Wall Street predicts that if Porsche is finally listed independently, with a valuation of about 60 billion to 85 billion euros, and the current market value of the whole Volkswagen Group is 112 billion euros, then Porsche's market value is close to re creating a Volkswagen Group. As soon as the news came out, the shares of Volkswagen and Porsche holdings rose sharply, up more than 14%.
In fact, the news about Porsche IPO has a long history. As early as early February 2021, German manager magazine reported that Volkswagen Group is considering various ways to boost the market value of the company, including the independent IPO of its Porsche brand As for the listing of Porsche brand, Porsche and the Piech family behind it have always been its fans. At the end of 2021, the news of Porsche IPO came out again. The idea of Volkswagen Group is not wishful thinking. After all, the success story of Ferrari is in front of us. Lutz meschke, chief financial officer of Porsche, once admitted that doing so can release the enterprise value and replicate the success of Ferrari.
It is reported that the largest shareholder of Volkswagen Group is Porsche SE, which is in the hands of Porsche family and Piech family. The two families hold 31.4% of the Volkswagen Group and 53.3% of the voting rights through Porsche SE. It is said that if Porsche and Piech family sell Volkswagen shares, they can raise about 15 billion euros. After the sale, Porsche and Piech family will still be the largest shareholders of Volkswagen Group. In May 2021, a person familiar with the matter disclosed that if Porsche is listed separately, Porsche and the Piech family are ready to take a direct stake in Porsche.
When asked about his thoughts on the listing of Porsche, Volkswagen CEO Herbert dis said: "although Volkswagen is still evaluating the possibility of the listing of Porsche, expanding battery capacity is the company's top priority." He also said that Volkswagen Group has been evaluating plans and projects conducive to the company's strategic development and implementation and improving the company's value, but did not comment further.
Porsche can be called the "profit cow" of Volkswagen Group. Porsche's high profit margin of bicycles is almost 10 times that of Volkswagen brand. Under the double pressure of the severe test of the global automobile market and lack of core, Porsche's annual sales exceeded 300000 for the first time, reaching 301915, an increase of 11% over the same period in 2020. Among them, Porsche China delivered 95671 new cars, a year-on-year increase of 8%. The growth of sales volume also contributed a lot of profits to the parent company. Volkswagen's third quarter financial report shows that in the first three quarters of 2021, Porsche sold 209000 vehicles, accounting for 3.23% of Volkswagen's sales in the same period. In the same period, Porsche created an operating profit of about 3.4 billion euros, equivalent to more than 24 billion yuan, accounting for 34% of the operating profit of Volkswagen's overall automobile business.
is the "blood transfusion" for the transformation of mass electrification
Such a strong premium ability also makes the capital market extremely optimistic about the prospect of Porsche, which is also the reason for its ultra-high market value forecast.
The reason why Volkswagen group chose Porsche IPO is the key period of the comprehensive electric transformation of Volkswagen Group. "For us, the Porsche IPO is a turning point and further ignites the momentum of our transformation to electric vehicles." Herbert DIS, CEO of Volkswagen Group, said bluntly.
As early as the 2016 general meeting of shareholders, Muller, then CEO of Volkswagen Group, announced strategic plans such as "together strategy 2025" and "roadmap e", officially opening the electrification transformation of Volkswagen Group. But "elephant turning around" is not easy. Although the public has made strategic adjustments early, the process is relatively slow. Id.3, once regarded by the public as comparable to Tesla Model 3, was originally planned to be listed at the end of 2019, but it was finally listed in 2020, because id.3 has a lot of software problems. Manager magazine once reported that hundreds of software testers will find 300 software vulnerabilities every day, and more than 10000 technicians are solving these problems.
On July 13, 2021, Volkswagen Group released the 2030 new auto strategy again to accelerate the transformation to a "software driven mobile travel service provider". Volkswagen Group also released its 2030 strategy. The strategy shows that by 2030, the group will reduce the carbon footprint of each vehicle in the whole life cycle by 30% compared with 2018. Meanwhile, the share of pure electric vehicles is expected to rise to 50%. By 2040, all new vehicles sold by the group in major global markets will be close to zero emissions. By 2050 at the latest, the group will be carbon neutral.
"In the future, the core business is to gradually shift the profits and revenue sources of the automotive industry from fuel vehicles to pure electric vehicles, and to software and services driven by autonomous driving technology. The fuel vehicle market will shrink by more than 20% in the next 10 years," Volkswagen said
The Porsche brand has developed a similar comprehensive transformation strategy. Bloomberg intelligence analyst Mike Dean said in a report that Porsche plans to make electric or plug-in hybrid models account for 50% of Porsche's overall sales by 2025; By 2030, almost all models except 911 will be fully electric.
However, this premise requires a lot of capital investment. In order to realize the transformation, Volkswagen Group proposes that the investment in electric vehicles, automatic driving and related future technologies will increase to about 73 billion euros by 2025, which is about half of the group's expenditure budget of 150 billion euros in the next five years. Porsche plans to invest 15 billion euros in electrification and digital transformation, and provide pure electric or hybrid models accounting for 80% by 2030.
Nowadays, the development of electrification has swept the global car market and set off a wave of frenzy in the capital market. This transformation is bound to attract more players. This move of Volkswagen Group is obviously to prepare for its long-term war of electrification transformation. Insiders told Huaxia times: "after the successful IPO of Porsche, this huge amount will be used for the research and development of electric models, which will also accelerate the process of mass electrification."
