Volkswagen Selected as Lead Underwriter for Porsche IPO... Expected to Be Europe's Largest IPO This Year

[Photo by EPA Yonhap News]

[Asia Economy Reporter Park Byung-hee] Porsche's IPO is becoming more tangible.

Porsche's parent company Volkswagen has selected Goldman Sachs, Bank of America (BOA), JP Morgan Chase, and Citigroup as the lead underwriters for Porsche's IPO, Bloomberg reported on the 31st of last month (local time).

Volkswagen's corporate value is expected to reach 90 billion euros, making it the largest IPO in the European market this year. Some analysts predict the corporate value could exceed 100 billion euros.

Porsche's IPO is expected to take place in the fourth quarter of this year. Volkswagen plans to reassess its corporate value through Porsche's IPO and secure funds for future investments in the electric vehicle sector. Volkswagen intends to spend 89 billion euros on electric vehicles and software by 2026.

Attention is focused on whether Porsche's IPO can revitalize the subdued IPO market this year. Bloomberg reported that due to the Ukraine war and inflation risks, global fundraising through IPOs in the first quarter of this year amounted to 65 billion dollars, a 70% decrease compared to 219 billion dollars in the first quarter of last year.

Johannes Lattwein, Porsche's Chief Financial Officer (CFO), said, "Despite the negative impact of the Ukraine war, we are continuing to prepare for the IPO."