Updated on July 23, 2024
Investors and at the same time lovers of fast cars may soon find their way. It is possible that Lamborghini will decide to issue its first public shares within the next few months. Wondering why it’s estimated like that? And do you want to know more details about the Lamborghini IPO? You will learn everything important in this article. Among other things, we will analyze the current financial situation of this company.
O Lamborghini
Lamborghini. Who does not know this brand of luxury fast cars? It is an Italian company Automobili Lamborghini SpA with a long tradition. It was founded in 1963. Its founder was Ferruccio Lamborghini. He first founded a company producing tractors, then he began to focus on air conditioners as well. And since he was a successful businessman who could afford such cars as Maserati or Ferrari, luxury cars were not far from him. However, he was not quite satisfied with them. And so he decided to start making cars according to his taste. That is why the Automobili Lamborghini brand was added to Lamborghini Trattori SpA, which manufactures tractors, which began to focus on the production of these luxury cars.
It probably goes without saying that this car brand is currently very popular all over the world. Leading designers including Bertone and designer Marcello Gandini are behind the development of these cars. These cars are currently available in a total of 165 dealerships worldwide. There are now 7 models for sale. And that includes the one from 2017, when the world saw the Lamborghini Urus for the first time. SUV suitable for family trips. The newest model was released this year. It is called Revuleto and is electrified.
Currently, the company is based in Sant’Agata Bolognese, Italy and manufactures in Bologna. It is part of the German concern Volkswagen AG and its CEO is now Stephan Winkelmann. In addition to Lamborghini, this group also includes the brands Škoda Auto, Audi and Porsche. By the way, everyone knows the cars that Lamborghini makes. But few people know that apart from cars, they also develop engines for marine vessels.
Lamborghini IPO
The first debates about the Lamborghini brand entering the market appeared in 2019. That’s when Bloomberg published information that Volkswagen was going to either sell Lamborghini or let it go public. However, the concern denied it, saying that it was unsubstantiated information. Management denied the claim, saying that no IPO is currently in the pipeline. However, he did not rule out the possibility that Lamborghini could go public at some point in the future.
Currently, however, everything indicates that the IPO could finally move forward. Porsche entered the Frankfurt stock exchange already in September of last year. And it was a huge success. It received roughly EUR 9.4. At the same time, the investors acquired a share in the company of approximately 12.5%. And so we don’t have to be ashamed to label it as one of the most important European IPOs in history.
And it looks like Porsche won’t be the only brand from the Volkswagen group to issue its public shares . That this would be the preferred route at Lamborghini is shown by the fact that the automaker was preparing its plans for an IPO even before the Volkswagen Group itself asked for it last year. The CEO of the company, Stephan Winkelmann, said this in an interview with Bloomberg.
Given the IPO
There are many guesses as to when the IPO could happen. For example, Bloomberg Intelligence analyst Michael Dean predicts that this could happen as early as the 3rd quarter of 2023.
If we look at Porsche’s successful IPO that took place at the end of last year, i.e. in a similar situation to the current market and the increase in the share price was 29.7%, we definitely have a lot to look forward to with Lamborghini.
Future outlook
Of course, alongside other companies, the crisis stemming from the Covid pandemic also affected the Lamborghini brand. Currently, however, we can say that it is growing again. Already in the first half of last year, its margin rose to 31.9%. From January to September 2022, a total of 7,430 cars were sold, generating a profit of $567 million. This is a 69% increase compared to 2021. And the demand for Lamborghini cars continues to grow. Above all, after the Urus SUV. In addition, in the automotive market, there is an increasing tendency of consumers to own an original car, which is also a limited edition.
According to experts, the company is currently valued at an estimated $11 billion. However, Dean’s opinion is that going public could lead to a valuation of up to $16 billion. At the same time, the share price cannot yet be accurately estimated in advance. But if we look at the share prices of competing companies, it can be estimated that they could be acquired for a price between 20 and 30 dollars.