The sports car maker is officially trading on the Frankfurt Stock Exchange.
After months of rumors and hearsay, the Volkswagen Group announced that it would offer up to 25% of Porsche's preference shares to the public in an initial public offering (IPO). After consulting with various banks and Porsche, Volkswagen set the placement price at €82,50 (approx. $80) per share.
A total of 113,875,000 preference shares have started trading on the Frankfurt Stock Exchange, under the "P911 GY" symbol - a nice tribute to the iconic Porsche 911. Among the total issued preference shares are 14,853,260 preference shares which, says Porsche, will cover possible over-allotments.
In honor of the listing - valued at $72 billion, the second-biggest market debut in Germany - Porsche vehicles were displayed outside the Frankfurt Stock Exchange, with nearly every iteration of the 911 present, lined up alongside an electric Taycan.
The listing will allow parent company Volkswagen to rake in upwards of $9 billion, providing the German giant with the funds to overtake Tesla. VW is determined to lead the electric vehicle segment, something analysts believe will happen very soon.
Despite crippling supply chain issues, the automaker's EV sales figures show plenty of promise. Even though overall Volkswagen Group sales declined by 6.3% in 2021, the automaker still managed to deliver 452,900 electric vehicles to customers across the world.
In the United States, the company holds 7.5% of the market share, and that's only set to grow with the introduction of the ID.Buzz and ID.Aero in the coming months.
Despite the less-than-desirable market conditions, the Zuffenhausen-based brand is proving a hit with investors. As per Reuters, the share price was up 3% in early trading while the rest of the German market saw declines. Shares in the Volkswagen, for example, were down by 4.6%
One banker told the publication that "this is not exactly a dream environment for an IPO today."
The group's chief financial officer, Arno Antlitz, told the Financial Times (FT) that the demand for Porsche's shares is very promising. "The high level of demand demonstrates investors' confidence in Porsche's future ... the proceeds from the IPO will give VW significantly more financial flexibility as part of its transformation toward electromobility and digitization."
Not all of the investment gleaned from the listing will head towards developing new electric products, though, with the FT reporting that some of the raised funds will be paid out to VW shareholders as a dividend.
Porsche isn't the only automaker to hit the stock market in recent months. Investors can also opt to purchase a stake in Polestar through the Nasdaq, with the automaker hoping to expand its presence with the profits.