Porsche shares soar on historic Frankfurt debut

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Porsche shares rose on its IPO on Thursday, in one of the largest public offerings ever in Europe.

Shares of the iconic sports car brand initially traded for 84 euros ($81) on Thursday morning, after being priced near the top of their range at 82.50 euros late Wednesday. It values ​​the company at around 75 billion euros.

On Thursday at 9.30 am London time, the shares had stabilized at 84.50 euros. Parent company Volkswagen is offering 911 million shares, a reference to Porsche’s famous 911 model.

“Today is a great day for Porsche and a great day for Volkswagen,” Volkswagen Chief Financial Officer Arno Antlitz told CNBC’s “Squawk Box Europe” on Thursday.

The organization knew the IPO would be successful, according to Antlitz, citing “strong financials” and “a very compelling strategy going forward.”

“We were confident that this IPO would be successful despite the challenging environment, and we were right,” he told CNBC’s Annette Weisbach.

Jefferies: Porsche is half of the Ferrari business

Before trading began, reactions were positive, with cornerstone investors having already claimed about 40% of the shares on offer, according to Reuters. Volkswagen, until now the sole owner of Porsche AG, is reducing its stake in the sports car company, recording a segment of 12.5%.

The listing should give Porsche a financial boost of 19.5 billion euros, giving the company more financial flexibility in the field of electric vehicles, according to Volkswagen.

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

“The Porsche AG has completely disconnected from the negative market trends,” an investor told Reuters, translated by CNBC. It is believed that companies are delaying the IPO due to current market conditions.

Porsche may have 'very good' debut, says former banker

However, the IPO will not be a trailblazer for other companies to follow suit, as Porsche remains a very strong brand with a unique market position. Volkswagen initially announced its plans to list Porsche on September 5.

Antlitz also addressed ongoing semiconductor shortages, which will remain an issue this year.

“We expect better supply in 2023, but we expect the deficit to ease in 2024,” Antlitz told CNBC.

Smead Capital Management: 25% return in equity forecasts for Porsche AG



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