Porsche IPO: Can Canadian investors buy the automaker's stock?

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Porsche IPO: Can Canadian investors buy the automaker's stock?

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 Porsche IPO: Can Canadian investors buy the automaker's stock?
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Highlights:
  • In 2020, the sales revenue of Porsche was 28.7 billion euros, and its operating profit was 4.2 billion euros.
  • Porsche Engineering and Porsche Design Group are subsidiaries of Porsche SE. Notably, Porsche SE and Volkswagen are listed on the Frankfurt Stock Exchange.
  • Porsche Automobil Holding SE (Porsche SE) is Volkswagen's parent company and also its largest shareholder.

German automaker Volkswagen and its top shareholder are reportedly making plans to list luxury carmaker Porsche and raise funds for its transition to make electric vehicles.

Porsche Automobil Holding SE (Porsche SE) is Volkswagen's parent company and also its largest shareholder. However, it is uncertain when the final decision over Porsche's public debut will be taken.

Porsche Engineering and Porsche Design Group are subsidiaries of Porsche SE. Notably, Porsche SE and Volkswagen are listed on the Frankfurt Stock Exchange.

Is Porsche IPO happening?

Multiple reports suggest that a Porsche IPO is likely because the expected multi-billion deal could help the German automaker shift from making fuel-powered vehicles to electric vehicles.

The Volkswagen group includes brands like Skoda and Audi, and it is reportedly investing 35 billion euros to become the world's largest electric vehicle manufacturer by 2025.

Porsche IPO                                                                                     ©2022 Kalkine Media® 

According to some analysts, Porsche is estimated to be valued at around 90 billion euros if its initial public offering happens. Meanwhile, Volkswagen's current market value is approximately 116 billion euros.

As per the official website, Porsche is the world's largest and most profitable manufacturer of classic sports cars. The company delivered 272,162 vehicles worldwide in 2020.

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In 2020, the sales revenue of Porsche was 28.7 billion euros, and its operating profit was 4.2 billion euros. In the same year, the sports carmaker had 36,359 employees.

Bottom line

Does this expected IPO interest you? If yes, then don't worry. Investing in foreign stocks is almost similar to investing in the Canadian market.

If Porsche IPO happens and its stock starts trading in the equities markets, Canadian investors will have an option to buy its stock. All they will need is a trading platform or a stockbroker with access to international exchanges.

To buy international stocks in Canada, retail investors can compare brokers with access to global stocks. Alternatively, they can set up an account with trading platforms of brokerage companies with international stocks.

In Canada, platforms like Wealthsimple Trade, Interactive Brokers, and Questrade could be used to get hold of international stocks.

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