Lamborghini, "envious" of Porsche

9 At the end of the month, Porsche landed on the Frankfurt Stock Exchange.

 

After the market closed on the first day of listing, Porsche 758.6 became the fifth largest car company in the world by market capitalization, with a market value of 93 euros per share, and its market value rose to 850 billion euros, successfully surpassing Volkswagen to become the fourth largest car manufacturer globally and the highest valued in Europe.

 

At that time, Oliver • Blume, CEO of Volkswagen, stated that Porsche's IPO was a plan to unlock more value from the brands under the Volkswagen Group, making it possible for Lamborghini, Bentley, and even Audi to go public.

 

 

Only two months later, rumors surfaced in the market that " Volkswagen is assessing the possibility of an initial public offering for Lamborghini ” "

 

Can it replicate Porsche's success?

 

According to foreign media reports, Lamborghini, a brand under Volkswagen, is preparing IPO to raise more funds for its operations.

 

Actually, after Porsche's IPO there were rumors that Volkswagen was evaluating the possibility of IPO . In response, Lamborghini executives stated that even before Volkswagen Group prepared to do this to its brands, Lamborghini had already begun formulating IPO strategies.

 

Of course, Lamborghini's listing is not unprepared.

 

 

Since the beginning of this year, Lamborghini has set new records: By the end of 6 month, it achieved its best-ever results in sales, turnover, and profitability.

 

Specifically, in the first half of the year, Lamborghini's global deliveries were 5,090 units, a year-on-year increase of 4.9% . In terms of financial indicators, turnover reached 13.3 billion euros, a year-on-year increase of 30.6% ; operating profit increased by 69.6% year-on-year, from 2.51 billion euros to 4.25 billion euros, with an operating profit margin of 31.9% compared to 24.6% 。

 

Stephan Winkelmann, • （ Stephan Winkelmann ）, Chairman and CEO of Lamborghini, said: " Despite the geopolitical uncertainties, Lamborghini still achieved excellent results in the first half of this year. The company's outlook remains optimistic, with current order volumes already covering the entire production capacity for 2023 year. ”

 

Based on Lamborghini's strong performance, especially the operating profit margin in the first half of this year, 31.9% provided a solid foundation. Meanwhile, according to predictions from industry financial analysts, Lamborghini's IPO is likely to start within the next IPO months. Considering the operating profit margin data, it is reasonable to estimate that it will reach 18 billion euros or more. 150 Lamborghini's CEO, Stephan

 

 

• Winkelmann, said that long before Volkswagen Group asked its brands to develop equity stories, Lamborghini had already begun telling its strategy to stock market investors. Through continuous collaboration with other institutions, Lamborghini provided them with more clear information to create greater transparency. Meanwhile, the plan

 

is closely related to Lamborghini's future development direction. IPO Back in March of this year, Lamborghini announced its electrification transformation plan. At that time, Lamborghini stated that it would invest

 

billion euros in 5 year, and that this funding would be entirely self-funded. At the same time, as a subsidiary brand of the Volkswagen Group, it will also benefit from the group's shared resources. 18 It is well known that the transformation to electrification is very

 

expensive " matter. ” NIO

 

 

CEO Li Bin once said that it takes at least billion for an electric vehicle company to reach mass production, and Xiaopeng Motors chairman He Xiaopeng also said 200 billion is not enough 200 …… Even domestic new car-making forces with annual sales of tens of thousands are like this 10 let alone a giant like Volkswagen. " matter. ” Six months later, from self-financing

 

billion to planning 18 it is evident that even with the support of Volkswagen Group, Lamborghini faces significant difficulties in its electrification transformation. To put it another way, Volkswagen is also hoping to raise funds for its transformation through the listing of its brands. IPO Volkswagen needs more

 

大众需要更多 IPO

 

Volkswagen's determination in its electrification transformation determines the tightness and demand of its capital chain.

 

Last year 7 month, Volkswagen publicly announced that 5 the new 1590 year plan will invest 890 billion euros. Among them, 50% billion euros will be used for software and electric vehicle technology, and spending in the electric vehicle field will increase by approximately 520 to

 

billion euros.

 

 

Meanwhile, electrification transformation is a long-term investment, and capital investment cannot be achieved overnight. 2020 For example, in the Chinese market, Volkswagen plans to 2024 from 150 to 10 years, will jointly invest approximately Even domestic new car-making forces with annual sales of

 

billion euros with its joint venture partners to accelerate its layout in China's electric mobility field; previous reports indicated that Volkswagen intends to acquire Huawei's autonomous driving department, with a potential acquisition price of several billion euros; currently investing

 

billion euros in establishing a software joint venture in China " It can be said that regarding electrification transformation, Volkswagen Group has too many areas to spend money on. The decline in performance coupled with substantial investment makes the pressure on Volkswagen Group's capital chain self-evident. ” Therefore, IPO the profit cow IPO Porsche went to the Frankfurt Stock Exchange with the mission of raising funds for Volkswagen Group's electrification transformation 195 。After Porsche's listing, it did not disappoint Volkswagen. Data shows that Porsche

 

 

brought IPO billion euros in revenue to Volkswagen Group. " This capital is undoubtedly a timely help for Volkswagen Group, which is currently short of money. ” Porsche's listing may have a significant incentive effect on other brands under Volkswagen. Therefore, news about the listing of Audi, Lamborghini, and other business units has been constantly circulating since Porsche’s listing. " It can be said that Porsche’s ” success has given Volkswagen's subsidiaries the

 

opportunity to benefit. IPO And Volkswagen naturally hopes to obtain more capital gains through its subsidiaries’

 

Data shows that 2021 year achieved revenue of 2502 billion euros, a year-on-year increase of 12.3% . Although benefiting from a better product mix and higher pricing, Volkswagen Group still achieved upward development in performance and operating profit margin, but the decline 60 in sales volume of 100,000 vehicles and the continuously increasing electrification transformation. How Volkswagen can raise more money under the condition of insufficient self-blood-making ability has become an unavoidable issue for Volkswagen to consider.

 

 

And the IPO of its subsidiaries has become an important choice.

 

Taking Porsche as an example, its IPO brought a total of 195 billion euros in capital gains to Volkswagen. Among them, 49% will be paid to shareholders as dividends, and the remaining funds will be used for Volkswagen's electrification transformation, helping it invest in new factories, new technologies, and new business lines. Therefore, if Lamborghini can IPO it can also help both Volkswagen and Lamborghini accelerate their electrification process to a certain extent.

 

However, although news of Lamborghini’s IPO has been circulating, the assessment of its progress is currently in the initial stage.