Can Porsche's deal rev up the IPO market?

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The Weekend Pitch

September 11, 2022

Presented by Masterworks

(Daniel Pullen/Getty Images)

It's been a dismal year for IPOs. Blame the usual maelstrom of headwinds—Ukrainflationterest?—as well as the terrible performance of the recent IPO class. PitchBook's index of VC-backed IPOs is down by more than half this year, and PE-backed IPOs have lost more than one-third of their value.

Now, a pair of mega-IPOs—carmaker Porsche and AIG-owned Corebridge—will be the talk of the market as they test the waters.

Volkswagen AG plans to list a roughly 12.5% stake in Porsche as early as this month in Frankfurt. The deal would be among Europe's largest IPOs by valuation at a reported $60 billion to $85 billion, based on preorders.

The conditions aren't great, but Porsche and VW have a habit of pulling off hard tasks in crummy markets. In the lead-up to 2009, Porsche accrued a majority stake in VW with an eye toward taking it over. But when the financial crisis deepened, fortunes flipped. Porsche dropped takeover plans and instead sought a merger with VW, which was completed in 2012.

This is the Weekend Pitch, and I'm James Thorne. You can reach me on Twitter @jamescthorne or by email at james.thorne@pitchbook.com.

In another major listing coming soon, AIG's Corebridge insurance and asset-management unit could be valued at more than $15.5 billion and raise up to $1.9 billion.

So is this the moment when the frozen IPO market will finally thaw? Not quite.

Porsche and Corebridge are unique offerings in more ways than one. The masses of IPO hopefuls in waiting, particularly young tech companies, will need more assurance before they brave the exchanges.

Quote/Unquote

"Together we hope to leverage our complementary expertise to build the next generation Consumer & Media private equity firm."

—Kim Kardashian, on Twitter following the launch of SKKY Partners, a PE firm that she has founded alongside former Carlyle Group partner Jay Sammons.

Deal flow

(mrcmos/Shutterstock)

For the UK and Ireland, private equity dealmaking is in line with previous years but faces tough comparisons to last year's banner numbers, which were unusually strong. According to PitchBook's latest analysis on the region, deal count and value now seem unlikely to reach last year's record numbers, having logged 762 deals worth a total £75.6 billion in the first half of 2022.

As in other regions, adverse conditions caused by rising interest rates and persistent inflation are having an impact across the UK and Ireland. Nevertheless, the deal flow this year is pacing at or above levels of previous years other than the blowout numbers seen in 2021.

Did you know ...

Beijing's Zhongguancun Science Park
(Sino Images/Getty Images)

… That the venture market in China has seen a decrease in deals since Q3 2021, when around 1,800 deals were completed in the region for a total value of $29.4 billion?

Our latest Greater China Venture Report breaks down the hurdles faced in the region over the past year, including regulatory issues, supply chain complications and other macroeconomic challenges.

Datapoints

Austin (Peter Tsai Photography/Getty Images)

While cities like San Francisco, New York, Los Angeles and Boston have long been the places to be for female founders, other spots have emerged as top contenders.

The Southwest, led by Austin, Dallas-Fort Worth and Phoenix, has seen explosive growth in capital raised by female-founded startups in recent years, according to PitchBook data. Washington, DC, and Denver have also seen a surge in capital going to female founders.

Recommended reads

What's keeping women from management roles? [Bloomberg]

These institutional investors are already paying for climate change. They're investing to fix that. [Institutional Investor]

How Britain has changed since Elizabeth II was crowned in 1953. [The Economist]

Crypto's core values are running headfirst into reality. [The Atlantic]

How book bans turned a Texas town upside down. [The New York Times]

The ultimate MBA networking event? A yacht party in Croatia. [The Wall Street Journal]

This edition of The Weekend Pitch was written by James Thorne and Ryan Prete. It was edited by Alec Davis and John Moore.

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Can Porsche's deal rev up the IPO market?

Quote/Unquote

Deal flow

Did you know ...

Datapoints

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