27, Refinitiv data shows, with only $4.5 billion from initial public offerings. The listing broke records, reaping the highest amount since Deutsche Telekom in 1996.īut Porsche is trading at a multiple of around 7.2 times its earnings - far below Ferrari's (RACE.MI) multiple of 40.Ĭompanies in the region have raised $44 billion from equity capital markets deals up to Sept. Volkswagen has said the market's volatility was precisely why fund managers were sorely in need of a stable and profitable business like Porsche AG in which to invest.Ī banker involved in the transaction described the Porsche listing as a one-off, predicting the market would freeze over again very soon. "This is not exactly a dream environment for an IPO today," said QC Partners wealth manager Thomas Altmann. Volkswagen priced Porsche AG shares at the top of the range despite broadly weaker stock markets after red-hot German inflation data and general market turmoil stirred by rising interest rates. "We are well set-up financially have strong cash flows to fund our electromobility strategy ourselves," the chief financial officer said. Of the 19.5 billion euros raised from the IPO, around 9.6 billion will go to Volkswagen - just under a fifth of the 52-billion euro budget needed for electrification plans - with the rest distributed among shareholders as a special dividend. Volkswagen CEO Arno Antlitz told Reuters the listing had done its part in helping to fund the carmaker's electrification drive. "The IPO has now made it very, very transparent what value the market brings to Porsche." "Porsche was and is the pearl in the Volkswagen Group," said Chris-Oliver Schickentanz, chief investment officer at fund manager Capitell. Traders said some investors who bought Volkswagen and Porsche SE as an IPO play could be unwinding their positions and switching into Porsche AG, undermining Volkswagen's aim of bumping up its capitalisation by showcasing the value of just one of its brands. Volkswagen's shares were down 6.9% from Thursday's open to 128.5 euros. Shares in Porsche SE (PSHG_p.DE), Volkswagen's largest shareholder, which now also owns a blocking minority in the sportscar brand, were down by 10.9% as investors switched across. It is Germany's biggest listing since Deutsche Telekom (DTEGn.DE) in 1996. The share performance puts Porsche AG's valuation at about 75.43 billion euros, only slightly below former parent Volkswagen, which is worth around 80.1 billion euros, and ahead of rivals such as Ferrari (RACE.MI).
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