Porsche goes public. Its IPO is launched. By September 29, European investors will be able to choose to buy shares in the subsidiary of the Volkswagen group. The operation is exceptional in Europe. The valuation of Porsche could reach unprecedented levels, while the manufacturer has not chosen to list itself in New York like its competitor Tesla but on the Frankfurt Stock Exchange.
Earlier this week, a press release announced that 911 million shares would be released in the coming days. For individual investors, it will be necessary to turn to preferred shares, i.e. 50% of the shares which do not give any voting rights (only dividends). The ordinary shares are currently distributed among the principal shareholders of Porsche, members of the Porsche Holding Stuttgart GmbH.
Other large investors will turn to preferred stocks. The Qatar Investment Authority, Qatar’s sovereign wealth fund, is one of the biggest hats. He promised to acquire 4.99% of the shares, or between 1.7 and 1.9 billion euros of shares (depending on the price negotiated at the launch of the IPO). Red Bull founder Dietrich Mateschitz also plans to invest. It will push the capitalization of Porsche in the same way as the Norwegian sovereign fund (750 million euros).
Fun Fact Porsche IPO
Issued share capital: 911! million shares (divided into 455.5m preferred shares and 455.5m ordinary shares)
— Alpha🌐Zone (@smartiesalpha) September 19, 2022
What price for a Porsche share?
Pending the start of negotiations, Porsche announces that the price of its preferred share will be between 76.50 and 82.50 euros. The manufacturer expects to be able to earn between 18.1 and 19.5 billion dollars with the operation. New money which will allow it to finance the continuation of its development, in particular in the electric transition, but also in alternatives such as synthetic fuel. A roadmap that remains for the time being in the hands of Oliver Blume, the CEO of Porsche – who has also just been appointed CEO of the Volkswagen Group since the beginning of September.
“The price range has been well received in the market, with broad global demand in the US, Europe and Asia, a source familiar with the IPO said. It is too early to have visibility on retailer demand, she added., can we read in a dispatch published by Reuters. It is estimated that Porsche could reach 80 billion euros in capitalization – the current capitalization of Volkswagen. We will still be far from Tesla, with its valuation ten times higher, but already Porsche will no longer be dependent on its parent company on the financial markets.
See you on September 29 to see how investors will react to this listing of Porsche on the stock market.