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Porsche shares rise in Frankfurt market debut


Porsche’s IPO is expected to be one of the largest in European history.

Thomas Kienzlé | AFP | Getty Images

Shares of Porsche edged higher on their stock market debut on Thursday, in what is being billed as one of the biggest public offerings ever in Europe.

Shares of the iconic sports car brand initially traded at 84 euros ($81) on Thursday morning. This after they were valued at the high end of their range on Wednesday evening, at 82.50 euros, valuing the company at around 75 billion euros.

Parent company Volkswagen is offering 911 million shares, a reference to Porsche’s famous 911 model.

It’s a “fair deal,” according to Phillip Houchois, chief executive of investment bank Jeffries.

Before trading began, reactions were positive, with high-profile investors having already claimed about 40% of the shares on offer, according to Reuters.

“Strong demand shows investor confidence in Porsche’s future,” Volkswagen chief financial officer Arno Antlitz said, as reported by Reuters and translated by CNBC.

So far sole owner of Porsche AG, Volkswagen is reducing its stake in the sports car company, with a 12.5% ​​share listed.

The listed shares are expected to give Porsche a financial boost of 19.5 billion euros, giving the company “more financial flexibility in terms of electric vehicles and digitalisation”, according to Antlitz.

The historic listing comes at a time of market turmoil as the auto industry continues to feel the effects of war in Ukraine and the valuations of other luxury automakers including Aston Martin, Ferrari, BMW and Mercedes- Benz, have all fallen in recent months.

“Porsche AG has completely decoupled from negative market trends,” an investor told Reuters, as translated by CNBC. The companies are believed to be delaying their IPOs due to current market conditions.

Porsche could make

The IPO is not meant to be a trailblazer for other companies to follow suit, as Porsche remains a particularly strong brand with a unique market position. Volkswagen initially announced plans to take Porsche public on September 5.

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