Porsche shares rise in high-profile debut in Frankfurt

Porsche shares soared on their stock market debut on Thursday, in one of Europe’s biggest public displays ever.

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Porsche Shares in the stock market rose for the first time on Thursday, in one of Europe’s largest public displays ever.

Shares of the popular sports car brand initially traded at 84 euros ($81) Thursday morning after being priced at the upper end of their range late Wednesday, at 82.50 euros. The company is estimated at 75 billion euros.

By 9:30 AM London time, shares were flat on Thursday at €84.50. main company Volkswagen Offered 911 million shares, a reference to the famous 911 model from Porsche.

“Today is a great day for Porsche and a great day for Volkswagen,” Arno Antlitz, Volkswagen’s chief financial officer, told CNBC’s “Squawk Box Europe” on Thursday.

The organization knew the IPO would be successful, according to Antlitz, citing “strong financial data” and a “very compelling strategy for the future.”

“We were convinced, despite the challenging environment, that this IPO would prove a success, and we were right,” he told CNBC reporter Annette Weisbach.

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Before the start of trading, the reaction was positive, with core investors already owning about 40% of the shares offered, according to Reuters. To date, the sole owner of Porsche AG, Volkswagen is reducing its stake in the sports car company, listing a 12.5% ​​tranche.

Listed shares should give Porsche a financial boost of 19.5 billion euros, giving the company more financial flexibility in terms of electric cars, according to Volkswagen.

The historic list comes at a time of market volatility as the auto industry continues to feel the effects of the war in Ukraine, and the ratings of other luxury carmakers including Aston Martin, FerrariAnd the BMW And the Mercedes Benz It has all declined in recent months.

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“Porsche has completely separated itself from negative market trends,” one investor told Reuters, translated by CNBC. He thinks companies are too Delaying public presentation due to current market conditions.

It may be the appearance of a Porsche

The IPO is not set to be a catalyst for other companies to follow, as Porsche remains a particularly strong brand and uniquely positioned in the market. At first, Volkswagen announced her plans For Porsche to launch to the public on September 5th.

Antlitz also addressed the persistent shortage of semiconductors, which will continue to be a problem this year.

“We expect better supply in 2023, but we expect shortfall relief in 2024,” Antlitz told CNBC.

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