Porsche overcomes global bad mood and raises BRL 50 billion on the Frankfurt Stock Exchange

Luxury car maker Porsche dodged the bad mood of the world stock market and launched on Wednesday night (30) the biggest initial public offering (IPO) since 2011 in Europe and one of the biggest of the world this year.

With funding of €9.4 billion (approximately R$50 billion) and valued at €75 billion (approximately R$400 billion), it attracted so much interest that half of the investors who reserved shares were unable to buy the shares, at the same time. week the pound plummeted in London.

Last Thursday, the day the Frankfurt Stock Exchange fell, the share of Porsche, an automaker that belongs to the German giant Volkswagen, rose by more than 3%, to close stable.

The IPO market is experiencing a shortage of offers, in Brazil and in the world, due to the increase in interest rates by central banks to contain the soaring inflation and geopolitical uncertainties with the war in Ukraine.

In Europe and the United States, the world’s biggest IPO stage, this has been the worst year for equity funding since the global financial crisis in 2008.

While IPO activity hit its lowest level in 20 years in the Americas, Asia hosted five of the top ten global IPOs this year.

Even in this adverse environment, Porsche reached the IPO at the top of the range signaled to investors, with the share leaving at € 82.50 (about R$ 435).

“Porsche will have a market value in the range of €75 billion after its IPO. This almost equals Volkswagen’s market value of around €83 billion,” says Swissquote Research in a customer comment.

The biggest IPO in Europe in recent years was that of Switzerland’s Glencore, which in 2011 raised US$ 10 billion (R$ 54 billion).

The offering, coordinated by Bank of America, Citigroup, Goldman Sachs and JPMorgan, attracted interest from major investors such as sovereign wealth funds in Qatar and Norway.

It was the second largest listing in German history, second only to Deutsche Telekom in 1996.

Swissquote Research points out that Porsche managed to get its IPO off the ground even in the midst of a lackluster market for equity offerings, citing as justifications for investor interest the premium paid by the company, of 7.5% over the preferred IPO price. , as well as its debt structure.

special dividend

With the success of the Porsche IPO, Volkswagen announced the future payment of a special dividend of 49% of its gross income. The reward for shareholders is positive, according to Morningstar, one of the biggest US analysis houses.

It is also seen as positive the destination of the remaining IPO proceeds, which will be contributed in the transition to battery electric vehicles, in which the company plans to invest more than €50 billion (R$ 265 billion) in five years.

The information is from the newspaper. The State of São Paulo.