Parent company Volkswagen has set the price of Porsche shares at between EUR 76.50 and EUR 82.50. As Reuters reported before the IPO, if the upper end of the range is reached, Porsche's listing would mark the third-largest IPO in European history. And that is exactly what happened.
Growth despite weak stock markets development
Shortly after the start of trading, Porsche AG shares were already (despite the unfavourable market development) plus 3 percent above the issue price of €82.50.* The company's valuation of €77.4[2] billion is close to the market capitalization of Volkswagen as a whole, valued at approximately €80 billion.
Investors could choose from common and preferred shares
Porsche issued a total of 911-million shares as a tribute to the iconic 911 model, 50 percent of which were common shares and the rest preferred shares. The IPO included 25 percent non-voting preferred shares. Half of this volume was to be purchased by Porsche SE at a premium of 7.5 percent over the IPO price, and another 12.5 percent was offered to investors, according to previously published information.
Good news for shareholders
Expectations were that the total proceeds from the share sale would reach between €18.1 billion and €19.5 billion. In addition, Volkswagen announced plans to call an extraordinary general meeting in December, where it plans to propose paying 49 percent of the total proceeds to shareholders in the form of an extraordinary dividend. As the company's IPO has become the largest since Deutsche Telekom in 1996, it is already clear that shareholders can be more than happy.[3]
Blume is not worried about the challenge
The positive sentiment was further bolstered by Oliver Blume's comments to Reuters, where he refuted concerns about his dual role as CEO of Porsche AG and Volkswagen, saying the decision was made "consciously". In addition to Porsche, the Volkswagen Group includes brands such as Volkswagen, Audi, Seat, Ducati, Bentley, Lamborghini, and Skoda Auto.
* Past performance is no guarantee of future results.
[1] https://www.reuters.com/markets/europe/porsche-debut-amid-market-tumult-historic-ipo-2022-09-28/
[2] https://www.reuters.com/markets/europe/porsche-debut-amid-market-tumult-historic-ipo-2022-09-28/
[3] https://www.reuters.com/markets/europe/porsche-debut-amid-market-tumult-historic-ipo-2022-09-28/
