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In February, Volkswagen made it clear that Porsche would go public independently, and now Porsche is finally going public. The German Volkswagen Group announced that its Porsche will be listed on the Frankfurt Stock Exchange on September 29th, with a maximum valuation of 75 billion euros (524.1 billion yuan). If nothing happens, Porsche will become the second largest IPO in German history and the third largest IPO in Europe.

Volkswagen said it would sell 12.5 per cent of Porsche's total share capital and generate a profit of 8.7 billion to 9.4 billion euros, which will begin on September 20th. At the same time, the IPO Volkswagen Group will also hand over important decision-making power of Porsche to the Porsche-Pi ë ch family, which will hold 53 per cent of VW's voting shares through a Porsche listing. The Pi ë ch family will buy 25 per cent plus 1 voting Porsche common stock, has agreed to pay a 7.5 per cent premium on the price range of preferred shares, and plans to fund the acquisition with debt capital of up to 7.9 billion euros and special dividends paid by Volkswagen, the report said. Volkswagen, for its part, said the deal would help Volkswagen finance the transformation of its electric vehicles and invest in software. Volkswagen revealed that if IPO goes well, it will hold a special general meeting in December and propose to pay 49 per cent of total earnings to shareholders as a special dividend in early 2023.

As for the independent listing of Porsche, it has been widely believed that the listing of Porsche may be related to Volkswagen Group and its own electric transformation. Volkswagen Group has said frankly that Porsche IPO is an important step in the transformation of Volkswagen Group and Porsche. Arno Antlitz, chief financial officer of Volkswagen Group, said: "Porsche's IPO will bring obvious impetus to Volkswagen's transformation." Volkswagen also revealed that the listing would help Volkswagen finance the transformation of its electric vehicles and invest in software.

According to the electric transformation strategy previously proposed by Volkswagen Group, Volkswagen will achieve more than 70% of the European market in 2030 and 50% in China and the United States. In the past 2021, Volkswagen has launched five models in China, including the ID.4 CROZZ and ID.6 CROZZ of FAW-Volkswagen and the ID.4 X, ID.3 and ID.6 X of SAIC-Volkswagen, but the sales of the five models are not high. According to the data, the cumulative sales of ID.4 CROZZ in the past year are 50233; ID.4 X is 36702; ID.6 CROZZ is 23977; ID.3 is 21826; ID.6 X is 12793.

Data show that Volkswagen Group, founded in 1938 and headquartered in Wolfsburg, Germany, is the largest automobile company in Europe. Volkswagen established its first joint venture in China in 1984 and FAW-Volkswagen in Changchun in 1991. At present, Volkswagen Group's sub-brands include Volkswagen, Audi, Skoda, Lamborghini, Bentley, Bugatti and Porsche brands. Among them, Porsche and Volkswagen also have a story of "acquisition and anti-takeover". In 2008, Wolfgang Porsche, the grandson of the founder of Porsche, proposed to buy shares in the Porsche Group, with a stake of 35.14%. However, due to the financial crisis, Porsche signed up to 10 billion euros in debt, and Volkswagen fought back against the successful acquisition of Porsche in 2009. Volkswagen bought a 49% stake in Porsche for 3.9 billion euros and finally completed its 100% control of Porsche in 2012.

As one of the most well-known luxury brands in the world, Porsche is the most profitable brand of Volkswagen Group. According to statistics, Porsche accounted for only 3% of Volkswagen's total sales in 2021, but contributed nearly 30% to Volkswagen's profits. Porsche's revenue in 2021 rose 15 per cent year-on-year to 33.1 billion euros; sales profit rose 27 per cent year-on-year to 5.3 billion euros; and sales returned 16 per cent, according to data.

In terms of sales, the Chinese market is an important source of Porsche sales, with figures showing that Porsche sold only 225000 vehicles in 2015 and 280000 in 2019 because of significant growth in Porsche sales in China. According to the data, Porsche's cumulative global sales in 2021 increased 11% year-on-year to 301915 vehicles, the first time its annual sales exceeded 300000. Among them, Porsche's cumulative sales in China increased by 8% to 95671 vehicles in 2021, accounting for 31.6% of the total sales. Porsche has become the world's largest single market for the seventh year in a row, with one out of every three Porsche sold in the world sold to the Chinese market. However, in terms of products, Porsche is still slow in the development of electric transformation. take the Porsche pure electric sports car Taycan, which was launched in 2019, as an example, the Taycan sold more than 7000 vehicles in China in 2021, but only accounted for about 8 per cent of Porsche's sales in China.

Porsche's cumulative global sales fell 5 per cent year-on-year to 145860 vehicles in the first half of 2022, with the Chinese market falling 16 per cent to 40681 vehicles, according to the latest figures. Porsche China said that the decline in sales was due to the overall downward trend in China's luxury car market in the first half of the year due to the global chip supply and the epidemic. Porsche still achieved good results in its largest single market, such as a 30% month-on-month increase in new car deliveries in the second quarter, including double-digit growth in new car sales and orders in June compared with the same period last year.

With regard to Porsche's development expectations in the second half of the year, Feng Peide, a member of Porsche's global executive board and head of sales and marketing, said that the auto market was expected to grow in the second half of the year and remained optimistic about future performance. As for whether Porsche will have a far-reaching impact on Volkswagen's "electric transformation" after it goes public independently at the end of this month, it is worth looking forward to.

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