Porsche is now worth more than Volkswagen.
Porsche has officially overtaken VW as Europe's most valuable carmaker after it went public on the Frankfurt Stock Exchange in September.
Last month, Volkswagen offered up to 25 percent of Porsche's preference shares to the public in an initial public offering. VW set the placement price at €82.50 (approx. $80) per share with shares trading under the "P911 GY" symbol, a nod to the classic Porsche 911.
The listing was the second-biggest market debut in German history, with a value of $72 billion. This week saw Porsche stocks rally to new highs after falling below its listing price on Monday. On Thursday, the stock rose to 93 euros ($91.95), giving Porsche a market value of 85 billion euros ($83.4 billion). The price slacked later in the day but gained momentum after investment banks propping up their listing purchased 3.8 million shares for 312.8 million euros.
German powerhouses Porsche and Volkswagen have been intertwined since Volkswagen's major buyout in 2009, after which Volkswagen became Porsche's parent company on 1 August 2012. In the past year, these two tectonic plates have been shifting apart. It all started in December of 2021 when Volkswagen considered a Porsche IPO, which was then said to be worth over $100 billion.
The move was part of a bold plan to bolster VW's conquest of the global EV market and would see the Porsche and Piech families relinquish a stake in VW to take control of the Porsche company. Fast forward to July 2022, and that evaluation took a nose dive due to the ongoing war in Ukraine and the threats of a global recession. But it's only taken a couple of months for the situation to improve.
With Porsche now officially the most valued car manufacturer in Europe, Volkswagen slots into second place with a market valuation of 77.7 billion euros. Mercedes-Benz comes in third place with a value of 57.2 billion euros, and BMW sits in fourth place with 47.5 billion euros. The Stellantis group makes fifth place with a valuation of 39.7 billion. The recent surge in Porsche stock prices has made it the fifth most valued company in Germany, after Linde, SAP, Deutsche Telekom, and Siemens.
Between 29 September and October 4 nearly 34 million shares or 11 percent of the total trading volume since the listing, have been sold. As a stabilization measure, 14.85 million shares worth 1.2 billion euros are available via the greenshoe option.
"Inflation data from Europe and the United States, recent worries over energy supply in Europe, and the escalation of the war in Ukraine last Thursday led to fluctuations which made small-scale stabilization measures necessary," said a spokesperson for Volkswagen.
After this successful IPO, Volkswagen will be looking to float its battery unit on the stock market after netting a handy $9.3 billion out of the Porsche deal.