Car manufacturer Porsche DE000PAG9113 (P911) has made a decent start on the stock market in the midst of a difficult market environment. Shortly after the start of trading on Thursday, the carmaker’s shares were quoted at EUR 84.00 – almost two percent above the issue price. The preferred shares of the parent company Volkswagen DE0007664039 , on the other hand, fell significantly by 5.5 percent. With proceeds of 9.4 billion euros for Volkswagen, it is the largest German IPO since Deutsche Telekom in 1996 DE0005557508 .
“Today a big dream is coming true for us,” said Porsche CEO Oliver Blume on Thursday at the Frankfurt Stock Exchange, who has also been at the helm of Volkswagen since September. VW DE0007664039 – CFO Arno Antlitz said: “We proved today: Volkswagen can capital market – even in a challenging market environment.”
Although the first price for Porsche dropped again shortly afterwards to 82.72 euros, the issue price of 82.50 euros could initially be defended. The German leading index Dax DE0008469008 continued to struggle with the 12,000 point mark on Thursday and had dropped to the level of November 2020 the day before.
Based on the first prize, Porsche achieves a market capitalization of around 76.5 billion euros. This means that the Stuttgart company is more valuable on the stock exchange than Mercedes-Benz DE0007100000 with around 58 billion euros and BMW DE0005190003 with 47 billion euros. The parent company Volkswagen was even higher on Thursday with 86 billion euros.
The issue price per preferred share was set at EUR 82.50 on Wednesday and was thus at the upper end of the previously announced range of EUR 76.50 to EUR 82.50 per share. This had already been expected in view of the high demand from investors. A total of almost 114 million preferred shares were placed. This includes approximately 15 million over-allotment shares.
According to Porsche, the lion’s share of the shares went to large investors. Private investors only received 7.7 percent of the placement volume. Because the offer was oversubscribed, not all private shareholders could have been considered, it said. Four anchor investors, including VW’s major shareholder Qatar, had already secured almost 40 percent of the shares in advance.
In preparation for the IPO, the share capital of Porsche AG DE000PAG9113 was divided into non-voting preferred shares and voting ordinary shares. A quarter of the assets – about an eighth of all shares – have now been sold. In addition, the umbrella company Porsche SE DE000PAH0038 (PSE) receives 25 percent plus one share of the tribe for a purchase price of 88.69 euros.
This gives PSE, controlled by the Porsche and Piëch families, a blocking minority and influence on important decisions. A total of 10.1 billion euros will flow into the coffers of Volkswagen AG as a result of the deal. PSE intends to finance the majority of the purchase price with outside capital. The PSE share, which is listed in the Dax, fell by nine percent on Monday at times.
Among other things, Volkswagen wants to use the proceeds to finance billions in investments in electromobility and digital technology. Almost 49 percent of the proceeds could go to the VW shareholders – an extraordinary general meeting is to vote on this in December. Also the VW employees in the company tariff and in Saxony waving a bonus of 2000 euros. Porsche has not yet officially announced the amount of a possible bonus for employees.
The people of Stuttgart hope that going onto the floor will take them a step towards more independence again. In 2008/2009, the Stuttgart company tried to take over VW – that failed and the Lower Saxony company swallowed up the sports car manufacturer. Since then, Porsche has been considered a pearl of return in the VW Group./dhu/DP/men
Porsche AG is a luxury automotive manufacturer that sells cars in more than 120 countries worldwide across a network of more than 900 dealerships and retail venues. In addition to its core product portfolio, Porsche AG offers vehicle leasing and financing, flexible mobility solutions and various aftersales products and services. In the fiscal year 2021, Porsche AG and its consolidated subsidiaries generated sales revenue of approximately 33.1 billion euro, an operating profit of approximately 5.3 billion euro and profit after tax of approximately 4 billion euro.
Article provided by www.boerse-frankfurt.de
