The value of the Porsche car brand is 75 billion euros after the IPO on Thursday morning in Frankfurt. The IPO is therefore proceeding as expected – parent company Volkswagen hoped for a value between 70 and 75 billion euros. With the IPO of luxury brand Porsche, parent company Volkswagen raised 9.4 billion euros. It is the largest stock exchange debut on the Frankfurt stock exchange since 1996.
At the opening of the stock exchange in Frankfurt on Thursday morning, Porsche rose almost 2 percent in value. The price per share was close to 85 euros around 11 a.m. Thursday morning. Porsche is therefore worth more than German competitors Mercedes-Benz (56 billion euros) and BMW (47 billion euros), which sell much more cars. Volkswagen says it wants to invest in electric cars from Porsche with the proceeds of the IPO.
Volkswagen’s timing is daring because of the war in Ukraine, high inflation and rising interest rates. In addition, the automotive industry is dealing with major hitches in its supply chains. Other car brands with a stock exchange listing, such as Ferrari and Aston Martin, lost more than a third of their stock market value last year. According to analysts who have confidence in the IPO of Porsche, the luxury brand is more isolated than other Volkswagen parts, such as Seat and Skoda, because the sports cars are very popular.
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