Porsche becomes Europe’s most valuable post-IPO

Following its public offering last week, Porsche has become Europe’s most valuable carmaker, with its shares rising today, replacing its former main shareholder Volkswagen.

Shares of Porsche fell below the IPO price on Monday to 81 euros, then rose to 93 euros, raising the company’s market valuation to 85 billion euros on Monday.

Porsche had been on the upswing when it bought 3.8 million shares for €312.8 million, with additional selling rights from investment banks in its initial public offering.

A markup is a mechanism designed to support share prices in companies’ public offerings.

4 OF THE 5 MOST VALUABLE MANUFACTURERS ARE GERMAN

The rise in share price put Porsche’s value above Volkswagen’s valuation of €77.7 billion, while Mercedes-Benz became Europe’s third most valuable car brand with a €57.2 billion valuation. euros. BMW is fourth with €47.5 billion, while Stellantis is fifth with €39.7 billion.

“Inflation data from Europe and the United States, growing concerns about Europe’s energy supply and the escalation of the war in Ukraine last Thursday have created volatility that requires minor stabilization measures,” a Volkswagen spokesman said.

The spokesperson added that approximately 34mn shares purchased between September 29 and October 4 correspond to 11% of the company’s trading volume after the IPO. (REUTERS)