Porsche shares rose sharply on Thursday after Volkswagen defied market volatility with the luxury car brand’s IPO that reached a valuation of 75 billion euros. The deal marked Germany’s second-largest share offering.
Volkswagen has priced the shares at the top of the indicative range and raised €19.5 billion from the offering, proceeds it intends to use to fund its vehicle electrification strategy. In the early morning (Brasilia time), Porsche shares were trading 3% above the issue price of 82.50 euros (R$ 427.86).
The rally in shares raised the automaker’s valuation to 77.4 billion euros (BRL 401.4 billion), close to Volkswagen’s market value as a whole of 80.1 billion euros (BRL 415.4 billion). ), and ahead of rivals such as Ferrari. It is the largest listing in Germany since Deutsche Telekom in 1996.
“There’s a lot to like about the company, with its aggressive electrification plans, strong expected cash flow generation and premium brand positioning,” Chi Chan, portfolio manager for European equities at Federated Hermes Limited, told Reuters.
“However, the IPO came at a time of unprecedented turmoil and falling consumer confidence,” he added.
The Porsche and Piech families, whose Porsche SE holding controls Volkswagen, will, in turn, solidify their control over Porsche AG because they will own 25% plus one common share — with voting rights — in the sports car brand.
Up to 113,875,000 non-voting Porsche preferred shares were sold in the initial public offering.
Bank of America, Citigroup, Goldman Sachs and JPMorgan served as joint global coordinators and joint bookrunners on the deal, while Mediobanca acted as financial advisor to Porsche.
Chad-98Weaver, a distinguished author at NewsBulletin247, excels in the craft of article writing. With a keen eye for detail and a penchant for storytelling, Chad delivers informative and engaging content that resonates with readers across various subjects. His contributions are a testament to his dedication and expertise in the field of journalism.
