28.10.2022 Post in Events

On September 29, investors cheered the largest IPO in Europe in terms of market capitalization. The high-profile event has been the second-biggest listing in Germany and the record market debut since 1996 and the time of Deutsche Telekom. Thanks to InstaForex, you also can participate in the Porsche well-established business and share the race for profits.

Porsche AG ventured to become a publicly traded company despite market turbulence, massive sell-offs, and the strong likelihood of a global recession. The company made a bold move towards its dream, namely freedom, independence, and development.

“We are on track – we believe Porsche AG, with its robust business model and compelling financial performance, is ready to launch its IPO”, Porsche AG Deputy Chairman and finance chief Lutz Meschke commented on the market debut.

Here is P911, the ticker for Porsche shares which could be your navigator in the race for your financial well-being.

What you need to know about Porsche IPO

Volkswagen launched 911 million Porsche shares in honor of the brand’s 911 flagship model. 455.5 million shares account for preferred stock and 455.5 million of them represent common stock.

Almost 25% of the preferred stock was listed during the IPO on September 29 on the Frankfurt Stock Exchange as the Prime Standard under the P911 ticker, the German securities code of PAG911, and the ISIN code of DE000PAG9113.

In practice, Volkswagen sold 25% of its preferred Porsche stock without the voting right or roughly 12.5% of the whole company through the IPO. The shares were priced at €82.50 apiece.

The company aimed to raise €9.4 billion via the listing. The funds will be invested in the e-vehicles division and software development for upgrading its luxurious sports cars.

The common stock will not be listed and will still be owned by Volkswagen. It means that the company retains the controlling interest after Porsche’s public offering.

Why choose Porsche?

Volkswagen Group consists of a variety of brands, ranging from family cars like Skoda to premium brands such as Lamborghini, Ducati, Audi, and Bentley. “Porsche was and is the pearl in the Volkswagen Group.”

Whereas Porsche accounted for only 3.5% of all car supplies by Volkswagen Group in 2021, the brand generated 12% of the overall revenue and 26% of its operating profit.

For the time being, six standard models are available with Porsche AG. Most of them have modifications. These are cars of a 718 and 911 series, an all-electric Taycan, a posh Panamera as well as SUVs Macan and Cayenne.

Porsche AG manufactured more than 300K cars in 2021 which is a new record for the company.

Porsche cars are immensely popular around the world. The Middle East and Africa can boast the highest demand which provides 43% of all sales. The lion’s share of sales goes to China, the company’s largest market.

Financial results

Porsche pumped up its sales and profits for at least three years straight. The company earned over €33 billion on its sales. The operating profit before interest and taxes stood at €4 billion.

Porsche estimates that the profit margin of its sales will vary from 17% to 18% for the whole of 2022 which will be worth roughly €38-39 billion. In the medium term, the company plans to generate a profit margin of 17-19%. Eventually, it could be expanded to more than 20% in the long run.

Notably, Porsche’s current financial results are in tune with market sentiment. Despite the economic turmoil, the company alongside other manufacturers of luxurious brands, including Lamborghini and Bentley, ensures record sales thanks to its affluent clientele.

Porsche’s goals

Just like with a gear shift, the IPO sets ambitious goals. The company board affirms that the listing will enable them to revise the concept of modern luxury, complementing this idea with sustainability and social responsibility. Porsche strives to evolve while developing its first-class products and services and to undertake social responsibility.

The company plans to make more than 80% of its new cars powered entirely by electricity (BEV cars) by 2030. Within the framework of this strategy, the company also endeavors to implement the total carbon neutral concept across the whole value chain as well as to ensure zero carbon emission for its future BEV cars.

 How to invest in Porsche

You can easily invest in Porsche on the condition you have a reliable broker. InstaForex traders have already gained access to the shares launched at the most-anticipated IPO of the year. Following a simple procedure for opening an account, you will be given access to 2,500 trading instruments, including “the key” to Porsche.