Why it is right for Porsche to go public now - Politics


Of course, they also took the war into account at Porsche. The word Ukraine appears 93 times in the IPO prospectus, always in connection with the Russian attack. All the other adversities in the world are also neatly noted in the 800-page bundle: inflation, the energy crisis, the lack of computer chips, the corona epidemic, the political situation in China, rising interest rates. After reviewing it, it is absolutely clear: There is actually no worse time to start such a big deal like this: On September 29, Thursday in a week, the Volkswagen parent company will acquire 12.5 percent of its subsidiary Porsche in the stock exchange sell. The fact that they pull through, despite everything, shows that the world may have become an uncomfortable place, but not for everyone.

Up to ten billion euros could come into the cash register, most of which goes directly to VW. The group wants to use it to finance the transformation, the switch to electric robot cars. But it's also about feelings: the family clans Porsche and Piëch invest preferentially, receive a right of veto and are thus closer again to the myth founded by Ferdinand Porsche: In 1930, the engineer founded a design office not far from Stuttgart's main train station, which has grown into this world-renowned brand. Finally, the employed Porsche managers dream of no longer being part of the tough VW group tangle. They have their entry into the leading German index Dax and even faster growth in mind.

The number of potential customers is increasing

In fact, there is much to suggest that the plan will work. Because the mood to buy may be clouded everywhere else: luxury is always an option, and that should also apply to the shares in a luxury car manufacturer that has grown steadily over the years and is once again reporting higher sales for the first half of 2022, "despite the military conflict in Ukraine". . This in turn is mainly due to the fact that the number of potential customers is constantly increasing, or as Porsche says: the HNWIs.

The HNWIs who High Net Worth Individuals, are those people who have more than a million dollars to spend a year. A number that can hardly be reached with a normal salary, but almost only through financial transactions and interest income, but with which many crises can be weathered. According to the carmaker, there were 43 million HNWIs in 2016, and by 2026 there are likely to be 106 million.

This view of the rich coincides with the results of the management consultancy Bain: "The luxury goods industry has so far shown itself to be very resilient to crises," says luxury goods specialist Marie-Therese Marek. Last year, people around the world spent 288 billion euros on watches, horses or cars. At the end of this year, she considers a sum of up to 330 billion euros to be likely. In any case, the war and inflation have so far "hardly" had an impact on sales of luxury goods, and the "longing for special rewards" is great. The current delivery time for a 911: 13 months, starting price 113,000 euros.



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