Porsche will offer its shares on the stock exchange

The Management and Supervisory Board of the Volkswagen Group has officially announced that their subsidiary Porsche AG will list its shares on the Frankfurt Stock Exchange. The market value of the company will be 60 to 85 billion euros

Soon, private investors could also become shareholders of one of the most famous European sports car brands, Porsche. After several months of preparation, the management and supervisory board of the Volkswagen Group officially decided this week that Porsche AG will begin the process of initial public offering of shares (IPO) on the stock exchange in Frankfurt.

The shares should appear in free trade before the end of the year, depending on various regulatory approvals and other processes. The company is supposed to offer the shares to interested investors over a period of four or more weeks, starting in late September or early October, after which they would arrive in the regular offer of the Frankfurt Stock Exchange. This process will be initiated only if it is shown that investors have sufficient interest, i.e. if the planned amount of capital is collected.

Money for electrification

Analysts expect that the Porsche share price will be set so that the market value of the company is between 60 and 85 billion euros. If these expectations are confirmed, Porsche’s IPO will be the largest initial public offering of shares in German history, as well as the largest European IPO since 1999. It is already known that Qatar, through its national investment fund, could buy about 5% of the shares, and they will be offered to small investors – primarily in the markets of France, Spain and Italy, where Porsche has a very good status among fans and customers.

The capital raised through the IPO should be used for a major initiative to electrify the Porsche range. Some analysts are skeptical of the whole process, primarily because it is being launched at a time of crisis, when the shares of other car companies are losing value and car sales are declining.