Porsche IPO Could Happen This Month
Volkswagen AG is moving forward with its plan to list a minority stake in Porsche, with the latest details suggesting that the initial public offering could manifest by this month – if not early October. It’s set to be one of the biggest IPOs ever. But it’s also sounding like Volkswagen Group may abandon the scheme if the larger political or economic situation continues to sour. Considering the continent’s present trajectory, that doesn’t sound like it’s beyond the realm of possibilities. However, the quick turnaround for the offering may mean VW can get out ahead of any social unrest and financial upheaval. Ideally, the automaker still wants to see the sale happen.
Porsche's Next Flagship Will Be an EV Crossover
Despite hardcore motorsport enthusiasts collectively proclaiming the 911 as Porsche’s greatest model of all time, it’s presently being outsold by the all-electric Taycan sedan. As a subsidiary of Volkswagen Group, Porsche was already poised to electrify its entire lineup in anticipation of government restrictions on gasoline-powered models. But consumer interest in high-end EVs may be accelerating the process.
Porsche IPO May Be Stalled Over Russo-Ukrainian War
Despite news that Volkswagen Group’s largest shareholder is eager to list the Porsche brand, rumors are swirling that the plan might be delayed over the conflict in Eastern Europe. VW and Porsche SE have openly shared their desire to launch the initial public offering (IPO) in the fourth quarter of 2022. However Porsche Automobil Holding SE’s finance head has suggested it might not be prudent if Russia is still occupying parts of Ukraine.
“We cannot rule out, if the conflict lasts a longer time, that this could have potential implications on the listing,” CFO Johannes Lattwein recently explained during a press conference held in Berlin, adding that no formal decisions have yet been made.
Volkswagen AG Pressing Potential Porsche IPO
Volkswagen Group is apparently in talks with Porsche Automobil Holding SE about a potential initial public offering (IPO) for the Porsche luxury/sports brand. According to a statement from VW, the duo has already negotiated the agreed-upon frameworks and is in final discussions as to when they want to move forward.
Weeks of rumor preceded corporate confirmation, making it seem like the proposed deal was already a shoo-in. But any final decisions will still need to be approved by the management and supervisory boards — something Volkswagen Group said has yet to happen.
Volvo Announces IPO, Polestar Does SPAC Merger
Volvo Cars has confirmed months of speculation by announcing that it’s planning to go public on NASDAQ Stockholm. On Monday, the automaker stated that it would be seeking to raise 25 billion Swedish kronor (nearly $2.9 billion USD) via the selling of new shares as a way to fast-track its electrification plans. Those include ensuring half its annual volume being represented by EVs and transitioning the majority of its sales stemming from online orders by 2025.
While the targeted IPO valuation is unknown, prior information coming from Zhejiang Geely Holding Group (Volvo’s Chinese parent company) suggested it was aiming for something in the neighborhood of $20 billion. We’ve also learned that the collaboratively owned Polestar would also be going public, except it will be using the always sketchy special-purpose-acquisition-company merger to help pump the stock.
Volvo Buying Itself Out of Chinese Joint Venture
Volvo Cars is plotting to buy out parent company Zhejiang Geely Holding and free itself of its Chinese joint venture. The Swedish (currently Swedish-Chinese) manufacturer has been hinting at the prospect of going public with an IPO, which most analysts believe would be bolstered by creating some distance from Geely.
While the Chinese Communist Party has ended mandates requiring electric vehicle firms from entering into joint ventures with established domestic businesses, the rule still exists for traditional automakers. However, the general assumption is that most will attempt to regain full ownership of their Chinese assets when the law is lifted next year. But critics are cautioning that the nation is under no obligation to maintain any commitment to foreign entities once they’ve split with their local partners.
Rivian Targets IPO Before Year's End
Rivian Automotive is seeking to go public in the fall and targeting a valuation of at least $50 billion, according to the latest reports. The all-electric startup company, supported by Amazon and the Ford Motor Company, has already amassed around $8 million from investors and was valued at $27.6 billion less than a month ago.
While we couldn’t possibly say what it’s actually worth, burgeoning EV manufacturers have performed incredibly well on the stock market lately. Rivian would almost assuredly see its valuation balloon to the targeted sum through an initial public offering. It already has a product line, 3,600 employees spread between the Midwest and California, some serious marketing under its belt, and a relatively strong relationship with a few of the world’s largest companies. We’ve seen more done with far less on Wall Street.
Fisker Goes Public With Spartan Energy SPAC
Despite having never manufactured a single production model, Fisker Inc. is a company reportedly worth billions. On Thursday, the prospective automaker indicated that it was ready to see how much more it could get via an announcement that it had officially completed its business combination Spartan Energy Acquisition Corp — a special purpose acquisition company — and was ready to be publicly traded.
Better call your broker.
Listen, if we could explain to you why technology firms with no product lineups or revenue sources are eligible to receive cash enemas from the stock market, we absolutely would. But the amount of mental gymnastics required to rationalize an answer has surpassed what your author can entertain without risking his own sanity. Special purpose acquisition companies (aka SPACs or “blank check” firms) have exploded in popularity and allowed dozens of businesses going public to rake it in via reverse-mergers this year. Whether it’s economic voodoo or sheer madness, it has become the status quo for IPOs seeking to raise insane amounts of money.
Faraday Future Returns, Discusses Going Public With Reverse Merger
Faraday Future is hoping to go public through a reverse merger, proving that the finances associated with electric vehicle startups rarely operate within the confines of reality. Founded by Chinese businessman Jia Yueting in April 2014, the company began making waves the following year when it announced a plan to invest over $1 billion a factory in Nevada (its first) and went on a massive hiring spree. With the help of millions in government tax incentives, the plan was to start building some of the world’s most advanced EVs by 2017.
But people were becoming suspicious as early as 2016, when questions were raised about where the money was coming from and how much was left. By year’s end, work on Faraday’s Nevada facility had been suspended indefinitely. Following a lightly-botched presentation of its future product in early 2017, more outlets began to report the company was quickly running out of money as it backed out of several more projects. Months later, an internal power struggle left founder Jia Yueting as the primary decision-maker. Faraday Future spent the next few years scrambling to repay its debts and scrounging for (mostly Chinese) investors that might get it closer to its ultimate goal of building cars.
Another EV Startup to Go Public As Canoo Merges With Blank-check Firm
Canoo Holdings Ltd., creator of highly configurable electric vehicles built atop its proprietary “skateboard” platform, plans to merge with a blank-check firm in order to seek investor cash. If past examples of EV startups going public are any indication, Canoo will soon be valued at eleventy bazillion dollars, give or take a few bucks.
On Tuesday, the company announced a tie-up with Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company, in order to get itself a listing on the Nasdaq.
Fisker, Eager to Attract All Sorts of Green, Goes Public
As predicted last week, Fisker Inc., the company created by Henrik Fisker that aims to introduce an ultra-eco electric crossover, the Ocean, in 2022, has announced plans to go public.
Again, as expected, Fisker made its move by merging with a blank check company backed by a private equity firm.
Uber Lowballs IPO, Eager to Avoid Lyft's Fate
Ride-hailing company Uber approached its Thursday initial public offering with an abundance of caution, setting a lower-than-expected share price in a bid to avoid rival Lyft’s stock plunge.
When markets open Friday, Uber’s stock will be priced at $45, near the bottom of a previously stated range that topped out at $50. That puts Uber’s initial valuation at just over $82 billion. Amid controversy surrounding its business practices and growing uncertainty about the viability of huge ride-hailing firms, Uber hopes to raise $8.1 billion from its IPO.
Lyft You Up: Rideshare IPO Could Mean Big Payday for GM
Back in 2016, General Motors invested half a billion bucks in Lyft, the rideshare company bent on taking Uber to school. When the deal was made, the companies portrayed it as a long-term strategic alliance. Since then, investments have been made in Lyft by GM’s competitors (namely Ford), and GM has made investments in potential Lyft competitors like Cruise Automation. Pro tip: don’t try to draw this particular family tree.
Today, Lyft went public on the stock market, seeing an astounding open of $87.24 a share. As a gearhead, why should you care about this? Well, remember that investment GM made in the company? The General now owns 18.6 million shares, which now translates into a net value of over $1.5 billion.
In a company besieged by idling plants and layoffs, suddenly finding an extra billion-and-a-half bucks on the books is surely a big deal.
Forget About Getting Your Hands on a Tiny Slice of Volvo
After hiring financial advisors earlier this year, a move many believed was a precursor to an initial public offering (IPO), Volvo parent company Geely now claims the waters are too choppy to float any shares in the resurgent Swedish automaker.
First reported by the Financial Times this past weekend, the Chinese holding company says there’s too many uncertainties and headwinds in the industry right now. Thus, no Volvo stock for you. The biggest uncertainty is the one that’s keeping automakers on edge the world over.
Tesla's Big Gamble With Other People's Money
Unless you were living under a rock or on the moon late last week, you know Tesla introduced not one but two concepts on Thursday night — a Class 8 semi truck and a kinda-sorta-maybe Roadster (is it a roadster or a targa? It’ll only cost you a quarter mil to find out).
Since then, many corners of the internet have been yammering about the feasibility of Tesla’s plans, not to mention the wisdom of taking eyes off the very important ball that is the Model 3 in favor of two models that likely won’t appear until the next decade.