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Volkswagen-owned sports carmaker Porsche begins publicly trading today in what is Germany’s second-largest initial public offering, behind Deutsche Telekom’s $13B IPO in 1996. The IPO is also the third biggest in Europe, valuing Porsche at about $73B. Porsche expects to raise more than $9B. A portion of the funds may be used toward investments in electric vehicles, observers say.
Approximately 114 million shares, or 12.5% of Porsche’s total 911 million shares—an ode to its popular 911 sports car—are for sale to the public at about $80 per share. The sovereign wealth funds of Qatar, Abu Dhabi, and Norway, along with Baltimore, Maryland-based mutual fund firm T. Rowe Price, have together committed to taking up as much as $3.5B of the IPO.
Volkswagen bought Porsche in 2012 after a takeover struggle between the two automakers. Last year, Porsche earned nearly $4B in profit on revenue of $32B.