Porsche Worth $73 BILLION After One Of Europe’s Largest IPOs
Porsche honored its most iconic model by issuing 911 million shares in its landmark market debut.
Despite being a proprietor of luxury performance vehicles targeted at the wealthiest sliver of the population, Porsche has just made one of the biggest market debuts in European history.
Volkswagen, Porsche’s parent company, had valued the German marque at $78 billion ahead of its Initial Public Offering (IPO) on September 29, according to a Robb Report article citing the Wall Street Journal. For comparison’s sake, market caps for Ford, GM and Volkswagen are currently listed at around $54 billion, $57 billion, and $89 billion.
Porsche issued 911 million shares, in honor of the German automaker’s most iconic model. A quarter were preferred shares to be sold for between $76.50 and $82.50, and those are divided between nonvoting preferred shares and ordinary shares with voting rights.
Porsche opened on the Frankfurt stock Exchange at 2 percent over its predicted IPO price range and rose another 5 percent before losing gains and settling in its predicted IPO price range. According to CNN, that gives Porsche a market value of around $73 billion.
The IPO marks largest in Europe this year, the second largest ever in Germany, and the first time Porsche shares will be available for public purchase since Volkswagen’s acquisition of the brand in 2012. But Porsche SE, owned by Ferdinand Porsche’s heirs, will own 25 percent plus one share of Porsche’s voting block to maintain control of the company.
Porsche could raised $9.1 billion through the IPO. According to Volkswagen CFO Arno Antlitz, that money will help Porsche continue the transition into electric vehicles started by the introduction of the Taycan EV.
Porsche wants EVs to constitute 25 percent of its overall sales by 2026, which fits into VW’s plan to produce only electric vehicles by 2035.