Porsche IPO: Sports car maker shares surge in Germany's second biggest ever stock market listing worth £67bn

  • Porsche AG shares surged 3% to €85 from their final price of €82.50
  • Owner Volkswagen has offered 911m shares, in a nod to its most famous model
  • The chunky float is Germany's biggest since Deutsche Telekom in 1996

Shares in German sports car maker Porsche surged today as they started trading in Frankfurt in what marks the second-biggest ever listing in Germany's history. 

Despite market turmoil, Porsche AG shares opened at €84 - above the final price of €82.50 set at the top end of its range that valued the group at around €75billion (£67.3billion).

They were trading 3 per cent higher at around €85 by midday, lifting Porsche's market cap to around €77.4billion (£69billion). 

Porsche cars are lined up in front of the stock market as it makes its debut in Frankfurt

Porsche cars are lined up in front of the stock market as it makes its debut in Frankfurt

Owner Volkswagen has offered 911million shares, in a nod to its most famous model.

But the 12.5 per cent stake is made of 'preferred shares', which do not carry voting rights, meaning stock market investors will have little say. 

The company raised €19.5billion from the float, funds that will be used to boost its electric car production but also handed out to shareholders via dividends.

The similarly named Porsche SE, Volkswagen's largest shareholder, which is controlled by the Porsche-Piech family, bought 25 per cent plus one of the 'ordinary' shares, which carry voting rights. 

That means the Porsche-Piech family regain a controlling stake in Porsche thanks to the Initial Public Offering. 

Shares in Volkswagen and Porsche SE were down 5 per cent and 8 per cent respectively, as investors switched across.

The chunky float, Germany's biggest since Deutsche Telekom in 1996, comes at a time of upheaval with rampant inflation, rising interest rates and an energy crisis.

Uncertainty has caused investors to be wary of throwing their money at companies coming to market. 

Porsche chief executive Oliver Blume (right) and finance boss Lutz Menschke this morning

Porsche chief executive Oliver Blume (right) and finance boss Lutz Menschke this morning

Oliver Blume, chief executive of both VW and Porsche, said this was a 'historic moment'.

'Today, a big dream comes true for Porsche,' he added. 'Our increased degree of autonomy puts us in a very good position to implement our ambitious goals in the coming years.'

Klaus Schinkel, managing director and head of Germany at Edison Group, said the successful IPO was a 'milestone' for European equity markets, but does not expect it to pave the way for more listings.

The Porsche IPO is a very special case due to its sheer size, strong brand, and support from strategic shareholders. It will therefore not pave the way for a new wave of IPOs 
 Klaus Schinkel of Edison Group

'While it is a positive sign that despite the current political and economic turmoil companies can go public, the Porsche IPO is a very special case due to its sheer size, strong brand, and support from strategic shareholders.'

'One headwind which IPOs will face, even once volatility levels have come down, is the fact that issuers that went public in the past 12 – 18 months are beginning to show meaningful value, following poor share price performance after their listings.

'We believe that balance sheet strength and cashflow visibility will be key considerations for investors going forward.'

Dom Tribe of management consultancy Vendigital said the IPO could allow Porsche to take on Tesla.

'Some analysts have questioned VW’s timing (due to the energy supply crisis in Europe and its impact on equity markets), but with Tesla experiencing production challenges in China due to its zero-Covid policy, the decision to pick up the pace of its EV transformation could be a good move strategically,' he said.

'The pulling power of the Porsche brand, its strong profitability and loyal following, also means hype surrounding the IPO is likely to be higher than usual among individual investors.' 

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