Posted Sep 28, 2022, 10:04 PMUpdated on Sep 28, 2022 at 10:12 PM
The high range was chosen. Porsche announced, on the eve of its IPO, Thursday around 7:15 a.m. in Frankfurt, that its IPO price will be 82.50 euros. The Wolfsburg group’s share price, under the symbol P911 GY, was expected between 76.50 and 82.50 euros. With 113.9 million titles on sale, Porsche should raise 9.4 billion euros to finance its shift to electric.
It is the second largest IPO in Germany after that of Deutsche Telekom in 1996 and the largest in Europe since 2011 with the giant of raw materials Glencore. This is all the more exceptional since, in recent months, “IPOs” have been rare in Europe in an environment of inflation, rising interest rates and war in Ukraine.
Fifth capitalization of the auto sector
The operation should therefore give the luxury car manufacturer a valuation of around 75 billion euros. The one that some observers are beginning to call “German Tesla” would become the fifth capitalization of the auto sector behind the parent company Volkswagen (85.4 billion) but very far from the firm of Elon Musk (902 billion dollars).
The manufacturer of the mythical 911 currently belongs 100% to the Volkswagen group, itself controlled by the Porsche SE holding company, treasure of the Porsche and Piëch families who will thus strengthen their base through this operation. Volkswagen will sell 25% of the capital, plus one share, to Porsche SE, which will have a blocking minority in the sports car manufacturer.
Strong margin and encouraging outlook
If Volkswagen has ultimately placed only 12.5% of the capital of Porsche on the stock market, the second largest automotive group in the world intends to derive enough billions to inject into its costly transition to the electric and autonomous car. Volkswagen has also secured the support of key shareholders in Porsche such as the public investment funds of Qatar and Abu Dhabi, the Norwegian sovereign wealth fund and the American asset manager T. Rowe Price.
The company’s outlook has a lot to do with it: Porsche has raised its operating margin target to between 17 and 18% and turnover should grow by 11 to 14% compared to 2021.
What benchmarks in a constantly changing world?
Political uncertainties, scientific innovations, war in Ukraine, energy and ecological transition… How to understand these changes? How to position yourself? Every day, the 200 journalists from the “Echos” editorial staff help you decipher economic, political and international news through surveys, analyses, press reviews, chronicles and editorials. Our subscribers know that they can rely on these resources to better navigate our complex environment and make the best strategic decisions.
