German car giant Volkswagen has successfully floated its luxury car subsidiary Porsche AG in Frankfurt in the biggest European stock market deal in more than a decade. Porsche’s share price rose to 84 euros ($81), up from the initial trading price of 82.50 euros, valuing the Porsche group at more than 76 billion euros.
“This is a historic moment for Porsche,” said company director Oliver Blume, who is also CEO of its parent, German auto group Volkswagen.
“Fulfilling the dreams of our clients is what drives us (…) with the completion of the listing, we are opening a new chapter in the history of our company.” Porsche’s market capitalization is higher than that of Mercedes-Benz (about 58 billion euros) or BMW (47 billion).
The automobile firm expected to raise 9,400 million dollars with the 113.9 million shares issued (of a total of 911 million into which the company’s capital has been divided, in homage to its most mythical vehicle) with which it will invest to promote the development of electric cars.
This is a priority throughout the Volkswagen group and has managed to attract the interest of major investors, including the sovereign wealth funds of Qatar and Abu Dhabi, Norway or the American asset management company T. Rowe Price.
It is the second-biggest IPO in German history, after Deutsche Telekom in 1996, and the biggest in Europe since 2011, when Swiss-based commodity giant Glencore debuted on the stock market. Analysts had hoped that Porsche would bring some optimism in the bleak economic climate, with investment bank Berenberg saying it could “provide a catalyst in an industry lacking positive surprises.”
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Source: Elmostrador
