Porsche shares debut amid market tumult

09/29/2022 | 07:18am

The luxury car brand debuted with a valuation of almost $72.5 billion.

That was at the top end of the price range set by parent firm Volkswagen.

Amid a big tumble for broader markets, Porsche proved the exception.

Its share were up over 4% after the first hour of trade.

The sale is one of Europe's biggest ever listings.

It values Porsche at almost the same price as VW, and ahead of rivals like Ferrari.

In all it should generate around $19 billion for Volkswagen.

That's likely to be used to help fund its shift to electric cars.

Porsche CEO Oliver Blume hailed Thursday's debut:

"We are convinced: there is more inside us. We will achieve independence and even greater entrepreneurial leeway. We want to become even faster, more flexible and more focused. Porsche will be able to continue to profit from the synergies within the Volkswagen Group."

Some investors had questioned whether now was the right time for the listing, with markets facing turmoil over the Ukraine war and resulting energy crisis.

But VW says it's actually the perfect moment, with fund managers sorely in need of a stable and attractive stock to invest in.

The Porsche and Piech families will remain big players, with a stake of 25% plus one share - effectively a blocking minority.

STORY: Porsche roared onto the stock market on Thursday (Sept 29), defying market turmoil.

Reuters 2022
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