Porsche launched its Initial Public Offering on the German Stock Exchange late last month. It was one of the largest in Europe, and proved to be quite a success for the automaker. Yesterday, Porsche passed Volkswagen as the most valuable car manufacturer in Europe.
On Thursday, Porsche shares rose to 93 euros ($90.56 at today’s exchange rates). It gives the automaker a valuation of 85 billion euros ($82.77 billion). This pushes the brand ahead of Volkswagen, which has a valuation of 77.8 billion euros (75.8 billion). Mercedes is the third most valuable brand in Europe with 57.2 billion euros ($55.70) followed by BMW and Stellantis with $47.5 billion and $39.7 billion euros ($46.26 and $38.66, respectively).
When Porsche hit the German Stock Exchange, it closed the first day at a valuation of 75 billion euros ($73.03 billion), with shares closing at 82.50 euros ($80.34). The stock slumped to 81 euros ($78.88) at the start of the week, but rose to 93 euros a share on Thursday before falling to 91.04 euros ($88.65) and a valuation of just under 84 billion euros, still ahead of VW.
Porsche raised 19.5 billion euros (18.99 billion) from its IPO, with just under half going to Volkswagen, Porsche’s parent company, which is somewhat ironic. The automaker’s high valuation makes it the fifth most valuable company listed in Germany, trailing behind Linde, SAP, Deutsche, Telekom and Siemens. According to Reuters, it is the 25th most valuable listed company in Europe.
Porsche is another company that went public. In 2015, Ferrari launched an IPO. I stuttered at first but recovered very well a few years later. Demand for luxury tents continues to face economic uncertainty. And the demand is very high for supercar makers like Porsche and Ferrari.
The stock’s value goes up and down all the time, and there’s a chance Volkswagen could take the lead again in the future. However, Porsche is a strong brand that caters to high-end customers who are willing to shell out for the badge and all the stamps that come with it. The company is facing a changing industry, and the IPO should help the automaker come out on the other side with a strong portfolio.