With $72 Billion Listing, Porsche IPO Is the Biggest in Europe in Over a Decade

Porsche goes public.
IMAGE PORSCHE

Porsche AG just made history with the ringing of the bell at the Frankfurt Stock Exchange with a successful initial public offering (IPO) last September 29. The German luxury carmaker is widely considered one of the most successful sports car manufacturers and the IPO gives it increased entrepreneurial flexibility. 

Priced at 82.50 euros per preferred share offered, Porsche debut listing on the stock market is Europe's largest IPO by market capitalization, now valued at around 78 billion euros ($72 billion or around P4.495 trillion), based on the calculated value of the offer price for the preferred shares and the corresponding value for the common shares. The shares are listed on the Frankfurt Stock Exchange under the trading symbol "P911," in reference to the company’s star product and one of the most iconic sportscars of all time, the Porsche 911.    

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Porsche’s parent company Volkswagen is placing 113,875,000 non-voting preferred bearer shares with no par value of Porsche AG. The shares represent 12.5 percent of Porsche AG’s issued and outstanding share capital. 

After the IPO, the valuation positions Porsche as the fifth largest car company in terms of market capitalization, just one position below parent company VW with a difference of about two billion euros only. This also puts Porsche ahead of German carmakers Mercedes-Benz, which is valued at about 55 billion euros and is ranked sixth, and BMW which is ranked eighth at about 45 billion euros.

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Porsche sales for the first half of 2022 was up by about 8.8 percent despite the challenges brought about by the pandemic economy, chip shortage, and other market challenges. The company has always been considered somewhat of a hidden gem in the Volkswagen group, so its successful IPO gives it a proper valuation for both Porsche and VW.

Part of the IPO proceeds will be used to finance the development of electrification for its future vehicles. Porsche added that with the IPO, the company will be shifting up a gear and setting itself ambitious goals: economically, ecologically, and socially.

Oliver Blume, Chairman of the Executive Board of Porsche AG, Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT at Porsche AG

Photo by Porsche.

"We aim to redefine the concept of modern luxury by combining luxury with sustainability and social commitment,” Porsche AG CEO Oliver Blume explains. “Porsche wants to grow with its luxury products and services and assume social responsibility.”

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Porsche also sees itself in a leading position when it comes to electromobility and has set itself ambitious targets: In 2030, Porsche wants over 80 percent of new vehicles delivered to be battery-electric vehicles ("BEVs"). As part of its strategy, the company is also working towards a net carbon-neutral value chain in 2030 and a net carbon-neutral use-phase for future BEV models.”

"We aim to inspire customers and fans around the world – with successful products and compelling financial performance. We want to share this passion with investors, and we are excited about welcoming those who have become a part of our unique Porsche family in this way," said Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT at Porsche AG. "Together, we are working with determination to implement our long-term strategy. Here, we can leverage the best of both worlds: the advantages of our luxury positioning and the synergies with the Volkswagen Group." 

"Today, a big dream comes true for Porsche. Our increased degree of autonomy puts us in a very good position to implement our ambitious goals in the coming years," said Chairman of the Executive Board of Porsche AG Oliver Blume. "Making our customers’ dreams come true is what drives us. Today, a big dream comes true for us. With the completion of the IPO, we are beginning a new chapter in the unique history of our company. This is a historic moment for Porsche. Above all, I would like to thank our more than 37,000 dedicated colleagues worldwide and all who have enabled us to announce our successful IPO today."

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