Porsche enters stock market with historic IPO. See price of its shares

In Germany's biggest IPO since Deutsche Telekom in 1996, Porsche AG shares were volatile on the first day of listing. The German auto major raised 19.5 billion Euros primarily to fund the group's electrification drive. The listing broke records and saw Porsche's market cap of around $72 billion was above rivals Ferrari and slightly lower than Volkswagen.

Known as the pearl in the Volkswagen Group, Porsche has some marquee investors like Qatar Investment Authority, T. Rowe Price, Norway's sovereign wealth fund and Abu Dhabi Wealth Fund. Despite market turmoil due to rising interest rates, Volkswagen priced the shares at the top end of the bracket.

Top investment banks like Bank of America, Citigroup, Goldman Sachs and JPMorgan worked on the deal.

Volkswagen's Pearl

Continental Europe's companies this year have raised the least amount since 2009. IPOs contribute only $4.5 billion towards it, as per Refinitiv data. Volkswagen said that the market volatility is why wealthy fund managers require an attractive and stable stock like Porsche AG. Chris-Oliver Schickentanz, Capitell's chief investment officer, said Porsche remains the Volkswagen group's pearl. He said the IPO has made Porsche's market value very transparent and will help the Volkswagen shareholders. Volkswagen had to spend billions of dollars to shift towards electric, and the executives thought long and hard for a long time before jumping in with its IPO.

FAQs

Q1. According to Chris-Oliver Schickentanz, Capitell's chief investment officer, who or what is Volkswagen's pearl?
A1. Porsche remains the Volkswagen group's pearl, according to Capitell's chief investment officer.

Q2. At what market value did Porsche debut in the stock market?
A2. The Porsche IPO debuted at a massive $72 billion. Its shares opened at 84 Euros for one share and were trading at 82.88 euros by 07:33 GMT.