Porsche goes public today: valued at 75 billion euros, Europe's largest IPO in nearly a decade

CTOnews.com, September 29, Porsche, a luxury car brand owned by Volkswagen, officially listed on the Frankfurt Stock Exchange in Germany today, opening at 84 euros, with a listing price of 82.50 euros per share and a valuation of 75 billion euros, which is also the largest IPO in Europe in nearly a decade and the second largest IPO in German history.

Porsche sold a total of 911 million Porsche shares, a figure in tribute to its classic 911 model. Porsche raised 9.4 billion euros by issuing 113.9 million preferred shares (no voting rights) to the public. In the IPO, Volkswagen sold 25 per cent of Porsche preferred shares, accounting for 12.5 per cent of the company's total stake. Qatar Investment Authority, Norway's sovereign wealth fund, Prudential and ADQ, which are cornerstone investors, subscribed a total of 40 per cent of the new shares.

According to Porsche's prospectus, its sales revenue in the first half of this year was 17.922 billion euros, up 8% from a year earlier, and its after-tax profit was 2.505 billion euros. From 2019 to 2021, its sales revenue was 28.515 billion euros, 28.695 billion euros and 33.138 billion euros, respectively, and after-tax profits were 2.801 billion euros, 3.166 billion euros and 4.038 million euros, respectively.

CTOnews.com learned that the Porsche IPO will bring a total of 19.5 billion euros to Volkswagen. It is reported that 49% of these earnings will be paid to Volkswagen shareholders as dividends, and the rest of the money will be used for Volkswagen's electrification transformation. According to Volkswagen Group's plans for the transition to electrification, it will invest 89 billion euros in research and development in electric vehicles and digitalization.