One of the biggest stock market entries in Europe took place on 29 September. It is even the largest German IPO since Deutsche Telecom entered the investment game in 1996. It is Porsche AG. The share price started at €84 apiece, valuing the carmaker at €75 billion.
The important fact is that this does not put into circulation the whole company, but only a part of it. Porsche is offering only an eighth of the whole to the investing public, with the other half of a quarter remaining in the founding family to retain decisive influence. As part of the listing, 114,000 priority shares were issued. For investors, this is very lucrative news, also considering the fact that Porsche has been experiencing continuous revenue growth for a long time, with €30 billion in 2021.
The company's chief investment officer himself said that Porsche was and is a pearl in the portfolio of Volkswagen, to which concern the car manufacturer from Stuttgart belongs. According to analysts from Reuters, the proceeds from the shares should be around EUR 20 billion. The company took this step because it plans to make a massive investment in electromobility. However, the public is wary as the company is making this move despite headwinds. This raises the question of what the real yield from this company will be.
Porsche AG's performance since going public. Source: tradingview.com
* Past performance is no guarantee of future results.
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