Luxury sports carmaker Porsche raced onto the Frankfurt stock exchange Thursday with one of Europe’s biggest listings in years, leveraging its brand power to defy global market turmoil.
Its shares rose to over 84.70 euros ($81.90) in morning trading, bettering the 82.50 euros price set by its parent company Volkswagen, and outperforming a weak Frankfurt market.
Even as markets worldwide suffer from surging inflation and mounting recession fears, the maker of the 911 sports car has pushed ahead with the bold flotation that gives Porsche a valuation of more than 76 billion euros.
The carmaker’s chief Oliver Blume said the listing was a historic moment for Porsche, as he rang the bell to mark the start of trading at the Frankfurt exchange.
A big, proud day for all of us... We are adding a new chapter to the unique history of Porsche, added Blume, who is also the CEO of the wider German auto group Volkswagen.
Volkswagen is set to raise 9.4 billion euros ($9.2 billion) from the listing, with some to be ploughed into the group’s shift to electric vehicles that is bringing it into greater competition with US rival Tesla.
In terms of value of shares issued, Porsche’s is the biggest stock market debut in Germany since Deutsche Telekom’s in 1996, and the largest in Europe since the 2011 flotation of Switzerland-based commodities giant Glencore.
Analysts have looked to the carmaker’s market entry for some cheer against a morose economic backdrop, with investment bank Berenberg saying it could offer a catalyst in an industry sorely lacking positive surprises.
It has generated buzz in Porsche’s home market of Germany, where top tabloid Bild described it as crazy, cool, fast-paced.
Sports car icon Porsche goes full throttle and races onto the stock market, read a column in the paper.