Porsche shares close flat after watershed listing of USD 72 billion

By Rashi Thakkar  | Date: 2022-10-01

Porsche shares close flat after watershed listing of USD 72 billion

Dr.-Ing. h.c. F. Porsche AG shares had reportedly revealed having a shaky start on Thursday i.e., 29th September after Volkswagen flouted market volatility by listing the sports car brand at a USD 72 billion valuation in Germanys second largest market debut.

It is worth mentioning that the share prices closed at USD 80.74, touching their issue price from the session high of USD 85. Volkswagen set the price for Porsche AG shares at the high-end of the spectrum and raised USD 19.12 billion through the initial public offering (IPO) to support the groups push toward electrification.

For those unversed, cornerstone investors who claimed 40% of the share sale included T. Rowe Price, Qatar Investment Authority, the sovereign wealth fund of Norway, and Abu Dhabis ADQ.

Additionally, about 25% plus one ordinary share were given to Piech and Porsche families through Porsche SE, Volkswagens biggest shareholder, which currently holds a minority veto power over the sports car manufacturer.

Porsche AG is valued at about USD 74 billion as a result of the share performance, which places it above rivals like Ferrari and just slightly below erstwhile parent Volkswagen, which is valued at about USD 78 billion. Notably, this has been the largest listing in Germany since Deutsche Telekom AG in 1996.

As investors switched over, shares of Porsche SE, the German automakers largest shareholder, slipped by 10.9%. In addition, the shares of Volkswagen decreased 6.9% from Thursdays opening price to USD 126 approximately.

Chris-Oliver Schickentanz, Chief Investment Officer at Capitell, stated that Porsche was and still is the crown jewel of the Volkswagen Group, and that the IPO had made it very obvious what value the market delivers to Porsche.

On the other hand, Arno Antlitz, the CEO of Volkswagen, commented that the IPO had contributed to funding the automakers push toward electrification.

To support Mr. Arnos claims, the Chief Financial Officer of Volkswagen stated that the company was well positioned financially and had solid cash flows to fund its electromobility strategy.

Source Credit: https://www.reuters.com/markets/europe/porsche-debut-amid-market-tumult-historic-ipo-2022-09-28/

About Author

Rashi Thakkar     aeresearch.net

Rashi Thakkar Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for BonafideNews and various other websites, covering an array of sectors from finance and b...

Read More