Porsche AG shares surged on their first day of public trading after Volkswagen raised $9.1 billion in Europe’s largest IPO.Volkswagen lined up investors to acquire shares for a minority position in the creator of the 911 sports vehicle and Cayenne SUV.Volkswagen aims to invest in software and electric vehicles as the auto industry turns to enthe ergy transition.
War in Ukraine, inflation, increasing interest rates, and a global oil constraint have heightened fears of rea cession in Europe and the U.S. Europe’s Stoxx 600 index dipped last week.
Porsche’s superior profit margins and rethe cession-resistant luxury company attracted investors, who bought shares at the top of the initial offer range.
Qatar, Norway, and Abu Dhabi governmental investment funds, plus T. R.
Volkswagen, which owns Audi, Lamborghini, SEAT, and Skoda, will remain Porsche’s biggest shareholder and industrial cooperation will continue. Porsche will gain autonomy from the transaction.
Oliver Blume, Volkswagen’s CEO, will also lead Porsche.
Non-voting shares of 12.5% of Porsche were offered to investors. Porsche Automobil Holding SE, representing Ferdinand Porsche’s descendants, bought 12.5% plus one voting share at a 7.5% premium. They own 53% of Volkswagen’s voting shares.
Volkswagen bought Porsche in 2012 after Porsche’s failed bid left it in debt.
The two share transactions raised 19.5 billion euros. 49% will go to Volkswagen stockholders as a dividend. VW invests the rest in future technologies.
Volkswagen may use the money to invest in new facilities, technologies, and business lines as the global auto industry shifts to electric vehicles a,nd software development plays an ever-growing role in that change.
According to Refinitiv, the deal ranks third among Europe’s biggest share offerings, behind Enel in 1999 ($16.6 billion) and Deutsche Telekom in 1996 ($12.5 billion).
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