Porsche stepped on the gas on the stock exchange Business RusLetter

Porsche stepped on the gas on the stock exchange Business RusLetter



Porsche's biggest German IPO in more than two decades, raising €9.4bn and valuing it at €75bn. The luxury sports car maker's decision to list in challenging market conditions, is why many experts see this IPO as a test of investment appeal.

German luxury car manufacturer Porsche on Wednesday, September 28, spent IPO, which turned out to be one of the largest on European stock exchanges ever and the largest IPO in Germany in the last 25 years. When placing the company's shares, they traded at €82.5, that is, at the upper limit certain before this price band. Thus, the total cost of Porsche was estimated at €75 billion. The company raised €9.4 billion during the IPO.

This morning, at the opening of trading on the Frankfurt Stock Exchange, the company's shares rose to €84 - however, then they fell quite strongly: to €62. Lately, post-IPO stock declines have become quite common.

Volkswagen Group, which includes Porsche, announced about the company's IPO in early September. In advance of the IPO, Porsche's share capital was divided into two equal parts: 50% of the company's capital became ordinary shares, and the other 50% became preference shares without voting rights. During the IPO, investors were sold 25% of the company's preferred shares. After the offering, Porsche's majority stake - 25% of the ordinary shares plus 1 share - is still owned by the Porsche and Piech families. VW owns 12.5% ​​of the company's shares.

With the IPO of its most profitable company - Porsche accounts for about a quarter of the group's operating profit - VW Group wants, among other things, to try to repeat the successful Ferrari listing in 2015, experts say. At the same time, the IPO takes place during a period of high volatility in the stock markets in the face of geopolitical and economic risks. Shares of most companies have been declining in the past few months, including other luxury car manufacturers: Aston Martin, Ferrari, BMW, Mercedes-Benz. By counting According to analyst firm Dealogic, 87% of US IPOs in 2021 are now trading below their IPO price. Under these conditions, many companies are refusing to list on the exchange - it is expected that in terms of IPOs in the US, this year will be the worst in more than a decade.

According to Ferdinand Dudenhoeffer, director of the automotive industry research center at the University of Duisburg-Essen, Porsche chose not the best time for an IPO, although it is interesting to look at the placement in such difficult conditions.

Some experts are more optimistic. “If you can make an IPO in such a difficult market, it shows the attractiveness of your business. Porsche is a mature, well-known business that does not need to raise capital. To bring it to market as a fully formed business is an exciting opportunity to do so,” said Phillip Ushua, an analyst at Jefferies.

Yana Rozhdestvenskaya



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