Porsche AG shares debuted today, September 29, on the Frankfurt stock exchange at the opening price of €84 (~$81.27), marking the largest initial public offering (IPO) in the last 25 years.
While the shares were initially priced at €82.5 (~$79.87), the quick rise in shares of 1.8% possibly indicated the public’s interest. Porsche’s parent company Volkswagen offered 911 million shares as a reference to the famous 911 Porsche model.
Arno Antlitz, Volkswagen’s chief financial officer, spoke to CNBC’s Squawk Box Europe about the success of the IPO and the Porsche brand.
“Today is a great day for Porsche and a great day for Volkswagen. We were convinced despite the challenging environment, this IPO would prove successful, and we were right.”
This new listing should offer Porsche a treasure chest of roughly €19.5 billion (~$18.93), which should give them the flexibility needed to transition to electric vehicles (EVs). The IPO seemed to have a positive impact among market participants despite auto manufacturers across the globe feeling the heat from flaky supply chains and issues produced by the war in Ukraine.
Antlitz also believes that the semiconductor shortage caused by supply chain issues should be ameliorated in the following year.
“We expect a better supply in 2023, but we expect an easing of the shortage to kick in in 2024.”
Placing this IPO in a tough market that 2022 has proven to offer speaks to the strength of the Porsche brand. Perhaps such a large IPO could be an overture to more IPOs coming to the market, possibly reviving the struggling IPO market of 2022.
Furthermore, Porsche intends to offer a battery-electric version of the Macan in 2024, with the goal of electrifying 50% of new vehicle deliveries by 2025 and 80% by 2030. A successful IPO will go a long way in providing this opportunity for the world’s foremost sports car brand.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.