Porsche a subsidiary of Volkswagen will start trading free on the Frankfurt Stock Exchange. The first day of trading for the stock is September 29 making it one of the biggest IPOs ever in the old continent.
A total of 113,875,000 preference shares will be offered to investors from the portfolio of Volkswagen AG. The preference shares of luxury car company are expected to be traded on the Regulated Market of the Frankfurt Stock Exchange under the ticker symbol P911 GY (Xetra) as of 29 September 2022. The ISIN is DE000PAG9113 and the securities identification number WKN is PAG911. Porsche shares will be split into two share classes, 50% preference share and 50% common share with voting rights
VW set the price range for the preference shares in Porsche AG in a range from 76.50 euros to EUR 82.50 euros per preference share. The IPO raised 9.4 billion at 82.50 euros the top of the pricing range indicating confidence in the company. The preferred shares will be offered to investors in Germany, Austria, Switzerland, France, Italy and Spain. Large institutional investors expressed interest like Qatar Investment Authority, T. Rowe Price, Norges Bank, and ADQ
Volkswagen‘s biggest shareholders, the Porsche and Piëch families, will buy 25%-plus-one of the ordinary shares, again about 12.5% of the entire company. After the IPO, Volkswagen will hold 75% of Porsche in its portfolio, while the Piech family will acquire 12.5% of Porsche (with voting rights) and 12.5% will be floated to the public.
Porsche last year reported total sales of €30.3 billion and an operating profit of €5 billion. The return on sales was at 16% and the automotive EBITDA margin was 24.5%, which is higher than Tesla’s (TSLA) 21%. The automotive after-tax return on investment at 21.3%. The company delivered 301,900 vehicles. Porsche generates close to 25% of Volkswagen’s operating profit. Volkswagen Group of 10 brands last year delivered 8,882,000 vehicles in 153 countries. Sales revenue was €250 billion; earnings after tax was €19.2 billion. The company has a compounded annual growth rate of 9% from 2017 to 2021.
The company offers six car models: 911, 718, Macan, Cayenne, Taycan and Panamera.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).