Porsche IPO - Shorting Opportunity?

Volkswagen is looking to spin out Porsche at a valuation of 70.1B to 75.1B.

Volkswagen valuation is currently around 86.5B.

In this current macro condition it seems to be an abysmal time for overpriced IPOs. Perhaps we have a shorting opportunity in the making.

Starting this thread now as a placeholder for when the ticker comes out for trading. Any car experts able to comment on fundamentals?


A good place to start might be comparing balance sheets to RACE (Ferrari ticker). Seeing how the two line up on numbers.


Total proceeds from the sale will be 18.1 billion to 19.5 billion euros. If the IPO goes ahead, Volkswagen will call an extraordinary shareholder meeting in December where it will propose to pay 49% of total proceeds to shareholders in early 2023 as a special dividend.

VW (Ticker: VWAGY) is valued at around $88B Usd/Euros. That makes the payout a 10% special dividend. Perhaps another play is therefore to get VWAGY shares around November and hope that it rises because of this news. And sell before the event, as the more-than-dividend-amount drop would likely not make it worthwhile to hold through ex-dividend date. There might even be withholding taxes on the German side, though not sure. Too bad it’s OTC, so no options to play this.

Btw kinda cool they are issuing 911M shares :slight_smile:


This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.