Porsche goes public with a valuation of more than 75 billion euros

If Porsche has moved away from Formula 1 in recent weeks following the end of negotiations with Red Bull, the German manufacturer of luxury sports cars hopes for a bright future on the stock market. This Thursday, September 29, the Volkswagen group brand made its debut on the Frankfurt stock exchange at an introductory price of €82.50, i.e. at the top of the price range announced by Porsche.

With a valuation of 75 billion euros, it is the biggest IPO in Europe for more than ten years and the stock market debut of Glencore, a Swiss specialist in raw materials. This market capitalization is higher than that of other German automotive heavyweights, such as Mercedes-Benz (56 billion euros) and BMW (46 billion euros).

The gap could even widen further with these manufacturers, since the action of Porsche was up 1% at 2 p.m. For its part, Volkswagen lost 5% at the same time, for a valuation of 80 billion euros. In other words, the Porsche brand alone is worth almost as much as the entire German group.

Only 12.5% ​​of the capital goes public

If the operation is colossal on the scale of the Old Continent, it should however be emphasized that Volkswagen has placed on the stock market only 12.5% ​​of the capital of its subsidiary renowned for its luxury sports cars. In addition, 12.5% ​​was sold to the Porsche SE family holding company, which controls 32% of the capital and 53% of the voting rights of the Volkswagen group.

If only a small part of Porsche’s capital is now open to outside investors, this should be enough to allow the brand to reap several billion dollars. A significant financial windfall to finance the transition to electric and autonomous cars, while the countdown is on in Europe, where the end of heat engines is set for 2035.

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