Porsche becomes Europe’s most valuable automaker after going public

Automaker Porsche topped the list of Europe’s most valuable automakers in 2022 after going public. The capitalization of Porsche 7 days after the IPO amounted to more than €82 billion. In terms of capitalization, Porsche was able to overtake Volkswagen, becoming the most expensive auto brand in Europe. The capitalization of the parent company Volkswagen is now about €78.6 billion, while Porsche has €82.7 billion, according to the Frankfurt Stock Exchange.

Porsche AG is the largest German sports car manufacturer. In 2021, Porsche AG delivered over 300,000 vehicles worldwide.

On Monday, October 3, Posche shares fell due to negative dynamics on European stock exchanges. The value of the shares recovered only after the largest banks that participated in the IPO bought about 3.8 million shares of Posche. In total, the shares were bought for the amount of €312.8 million. For example, the largest American bank, Bank of America, purchased Posche shares at a cost of €81 to €82.5 between September 29 and October 4.

Porsche entered the top five most valuable companies in Germany by market capitalization. Porsche shares were listed on the stock exchange on 29 September. The company managed to make the largest IPO in Europe, if you take into account the market capitalization together with ordinary and preferred shares.

The largest companies in Germany by market capitalization in 2022

1. Linde
2. SAP
3. Deutsche Telekom
4. Siemens
5. Posche

Investors have access to exclusively preferred securities, which do not give the right to vote. In total, 14 million preferred shares were placed on the Frankfurt Stock Exchange at a price of €82.5. Posche shares received a trading ticker on the stock exchange called “P911”. That was the name of the iconic model car Porsche 911. During the placement of shares, the company managed to raise a record €9.4 billion, which made Porsche’s largest IPO in Europe since 2011.