Porsche is about to land on the European stock market. How many investors will the huge IPO attract?

The 21st Century Business Herald reporter He Liuying reported that the downturn's European stock market will usher in a "living water".

On September 18, local time, Volkswagen Ag announced that the company's sports car brand Porsche Ag was listed on the Frankfurt Stock Exchange on September 29.

Volkswagen's first public offering (IPO) valuation target for Porsche was set to 70 billion euros to 75 billion euros, a decrease from the highest value of 85 billion euros mentioned earlier. It is said that this will be the second largest IPO in German history, and Europe has the third largest IPO since records.

Some analysts believe that Porsche may not be the best time to go public at this time. After all, Europe's current economic prospects still carry the energy crisis, high inflation, and the central bank's hikes. The performance of the stock market has also been weak. Since the beginning of this year, European stocks have continued to fall, and important stock indexes such as Germany DAX30 have fallen by 20%.

Even if there are many market anxiety, Porsche's IPO has attracted the cornerstone investors of Qatar, Abu Dhabi and Norway's sovereignty wealth funds, and T.Rowe Price. According to Volkswagen in late February this year, some of the shares of Porsche were listed, mainly to use this to raise funds to invest in "transformation" plans such as electric vehicles and autonomous driving technology development.

Today, the progress bar of this listing is nearing completion. The company will issue nearly 114 million preferred shares to the public, priced at 76.5 euros per share to 82.5 euros. It will be purchased on the 20th and traded on the 29th.

It will be available on September 29th

On September 29, Porsche will be listed on the Frankfurt Stock Exchange.

According to the announcement issued by Volkswagen, it plans to assign up to 114 million preferred shares to investors during the first public offering process. The price range is 76.5 euros per share to 82.5 euros. It is determined that total revenue (including potential excess sale) will be 8.71 billion euros to 9.39 billion euros.

In addition, Volkswagen will also transfer Porsche Automobile Holding SE to its major shareholders, a 25%plus 1 stock voting right of Porsche. The transfer price is 7.5%on the basis For a premium, the total revenue of the transfer will be 9.36 billion euros to 10.1 billion euros.

It is worth noting that the main shares of Porsche Motor Holdings are held by the Porsche and Piech Families. This transfer will expand the family's decision -making power to Volkswagen and Porsche. For many years Previously, the family and Volkswagen had undergone multiple rounds of acquisitions and gradually lost their control in it.

According to Volkswagen, Porsche's IPO has attracted many cornerstone investors. Qatar, Abu Dhabi and Norway's sovereign wealth fund and the common fund Puxin Group will subscribe for up to 3.68 billion euros as the cornerstone investors.

Investors may see Porsche more tough profitability. In 2021, Porsche's operating income was 33.1 billion euros, an increase of 15%year -on -year; sales profit was 5.3 billion euros, an increase of 27%; the return on sales reached 16%. In the first half of this year, the company's operating income and sales profits continued to increase to 17.92 billion euros and 3.48 billion euros; the return on sales also climbed from 16.9% in the same period last year to 19.4%.

Interestingly, after the news of the listing of Porsche, many market participants reminded Ferrari's listing journey. In 2015, Ferrari, a car brand of Fiat Chrysler (FCA), officially listed on the NYSE. At that time, the issue price was $ 52/share, and the initial market value was $ 9.8 billion. Since then, the stock price has risen all the way. As of the release of 196.9 US dollars/share, the total market value has reached 36 billion US dollars. This also makes the market look forward to Porsche's subsequent stock price.

At that time, Ferrari was listed on the debt vortex. The group officials said that listing the Ferrari brand was a good way to help the group raise funds, and hoped to use the funding for raising funds for the research and development of brands such as Jeep and Maserati. According to Volkswagen in late February this year, it hopes that it will use Porsche to raise funds with the help of Porsche and put it in the "transformation" plan such as electric vehicles and autonomous driving technology development.

From the data point of view, Porsche's electric vehicle sales are remarkable. Its pure electric model Taycan reached a global delivery of 4,1296 vehicles in 2021, a year -on -year increase of more than doubled. As for how much Porsche's independent listing can promote transformation, it remains to be verified by the market.

Isn't it a good time?

In 2022, with the occurrence of the Russian and Ukraine conflict, Europe has fallen into a long energy crisis. It is still in front of Europe. There is also an unstoppable inflation and economic concerns in the prospects of great interest rate hikes. In this context, some markets believe that it is not the best time to go public in Porsche at the moment.

From the perspective of stock market performance, European stocks do perform sluggish. As of press time, the German DAX30 index fell 20.1%within the year, the Italian MIB index also fell more than 20%, the Dutch AEX index fell 17%, and the French CAC40 index fell 16%.

Wang Xinjie, the chief investment strategyist of Standard Chartered China Wealth Management Department, told a reporter from the 21st Century Business Herald that "In the environment of energy crisis and inflation, which led to the continuous contraction of the European Central Bank, we believe that the overall macro environment or capital market performance of Europe this year is compared In other major countries around the world, they will bear greater pressure. "

Wang Xinjie specifically pointed out that "the spread between the current core and the second -tier countries has expanded, which is regarded as the measuring indicator of the financial stability of the euro zone. See, when the risk of debt division, the downlink risk of the euro area and the exchange rate of the euro against the US dollar will increase. "

Today's market discussion is mainly to activate the European stock market to a certain extent? Some analysts believe that investors have been looking at the European market this year, and this time it is expected to make the European calm IPO market active.

However, it is still necessary to note that the overall turbulent investment market will still bring more uncertain factors. Affected by the economic prospects of Europe, investment institutions once held high lumps of European stocks. In June of this year, the world's largest hedge fund bridge was bet $ 10.5 billion in European stocks.

On the whole, Wang Xinjie believes that "in the euro area, interest rate hikes may inhibit growth, and as Russia's natural gas supply decreases, energy prices have risen sharply, and the inflation rate has remained high. Therefore, we transfer the euro zone stocks from the core position to not optimistic, because we expect the euro zone to perform below global stocks in the next 6-12 months. "

- END -