Porsche to debut amid market tumult in historic IPO

FRANKFURT, Sept 29 (Reuters) – Shares in Porsche AG are listed on Thursday after Volkswagen (VOWG_p.DE) priced shares at the top end of the announced range, a sign the luxury brand is luring buyers despite market turbulence Has.

The books closed Wednesday with a final price of €82.50, the automaker said, at the top end of the €76.50 to €82.50 range announced earlier this month.

Shares are expected to start trading around 9:15 a.m. local time (07:15 GMT).

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The Bumper IPO, which is expected to raise around 19.5 billion euros ($19.0 billion), comes at a time when instability in European markets has meant almost no further share sales have taken place and Automaker stocks, including those in the luxury segment, have plummeted.

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Companies on the continent raised $44 billion this year, the lowest amount since the 2009 global financial crisis, of which just $4.5 billion came from IPOs, according to Refinitiv data.

Volkswagen said market volatility is precisely why fund managers with money to invest desperately needed a stable and attractive stock like Porsche AG.

“Porsche was and is the pearl in the Volkswagen Group,” says Chris-Oliver Schickentanz, Chief Investment Officer at fund manager Capitell. “The IPO has now made the value of the market for Porsche very, very transparent. Of course, this also has a positive effect on Volkswagen shareholders.”

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Given the tens of billions of dollars it would cost to make a radical shift to electromobility and software, Volkswagen executives had long considered listing Porsche, a move they hoped would raise both much-needed funds and the company’s own value Volkswagen would increase.

The Porsche and Piech families, in turn, consolidated their control of the automaker with 25% plus one voting common share in Porsche AG, effectively obtaining a blocking minority in the namesake brand.

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Up to 113,875,000 non-voting preferred shares will be sold to investors in the IPO.

($1 = 1.0273 euros)

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Reporting by Victoria Waldersee and Emma-Victoria Farr; Edited by Hugh Lawson and Richard Pullin

Our standards: The Thomson Reuters Trust Principles.

Emma Victoria Farr

Thomson Reuters

Reports on European M&A with previous experiences at Mergermarket, Bloomberg The Daily Telegraph and the German Press Agency.