Porsche goes public today and it is the largest IPO in Europe in the past decade

Volkswagen's luxury car brand Porsche was officially listed on the Frankfurt Stock Exchange in Germany today. It opened at 84 euros today, with a listing price of 82.5 euros per share and a valuation of 75 billion euros. The largest IPO in a decade and the second largest IPO in German history.

This time, Porsche sold a total of 911 million Porsche shares, which is a tribute to its classic model 911. This time, Porsche issued 113.9 million preferred shares (non-voting rights) to the public, raising 9.4 billion euros. During the IPO, Volkswagen sold 25% of Porsche's preferred stock, accounting for 12.5% ​​of the company's overall shares. Qatar Investment Authority, Norway's sovereign wealth fund, Puxin Group, and ADQ, as cornerstone investors, subscribed for a total of 40% of the new shares.

According to Porsche's prospectus, in the first half of this year, its sales revenue was 17.922 billion euros, an increase of 8% year-on-year, 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, and after-tax profits were 2.801 billion euros, 3.166 billion euros, and 4.038 billion euros.

The Porsche IPO will bring a total of 19.5 billion euros in capital gains to the Volkswagen Group. It is reported that 49% of these earnings will be paid to Volkswagen shareholders as dividends, and the rest of the funds will be used for Volkswagen's electrification transformation. According to the plan announced by the Volkswagen Group for the transition to electrification, it will invest 89 billion euros in research and development in the field of electric vehicles and digitalization.

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