Porsche may be worth 33% less than touted IPO price

LONDON – Porsche AG may be worth little more than two-thirds of the value being touted ahead of the luxury car ’s initial public offering (IPO), according to an analysis from Quest, a unit of Canaccord Genuity.

Volkswagen, the German group which owns the Porsche car brand, is seeking a valuation of €70 billion (S$96.9 billion) to €75 billion.

But Quest analysts James Congdon and Veena Anand assessed Porsche’s equity value at between €48 billion and €50 billion.

The current IPO valuation range does not fully price current risks, the analysts told clients on Friday.

“Porsche’s customer demand is untested against rapidly rising interest rates and high inflation pressures.”

They added that their calculations had taken into account factors such as “weak corporate governance” and exposure to China.

“Current pre-market indications above €90 per share suggests the market is willing to pay for a better-than-flawless execution of management targets,” the analysts said.

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