Porsche has announced that its shares are now part of Germany’s DAX index, a collection of the 40 largest stocks on the Frankfurt Stock Exchange.
Porsche (XETRA: P911 ) launched its share offering less than three months ago to overnight success, quickly rising from an introductory price of around 91 euros ($96) per share to more than 100 euros ($105) apiece. Despite the current difficult overall economic situation, the stock is included in the DAX index, the top 40 “blue chips” of the Frankfurt Stock Exchange.
“We are delighted and proud to have entered the German top 40 quickly,” said Oliver Blume, Porsche AG CEO. “Our rapid entry into the DAX shows that global investors are attracted to our business model and We are confident in the potential of our company.” Porsche shares are currently trading at just over 91 euros per share, having previously experienced more than
Porsche joins a list of incredibly notable brands on the DAX, including Adidas, Volkswagen Group, Airbus, Daimler, and DHL, to name a few.
While perhaps not a fantastic performer, Porsche’s stock has weathered the storm better than most, potentially indicating that investors see the company as a solid bet moving into an EV future. At the same time, Porsche’s announcement of a new EV model and its continued growth of Taycan production have been positive signs for the historic German company. At the same time, Porsche’s continued conservative sales growth throughout this year has undoubtedly eased market volatility concerns from investors.
Other automotive stocks have not been as fortunate, with Tesla perhaps being the worst example, losing over 30% of its share price over the past month and over 60% since one year ago.
As Porsche and other automakers close in on the end of the year and look to report their earnings for the final quarter of the year, it will be interesting to see not only the EV sales of manufacturers, but how these numbers affect the current fall in stock prices that the industry has witnessed.
It remains unclear when or if Porsche stock and stocks from other notable automakers will recover, especially as inflationary issues continue to plague many large economies, leading central banks to battle the problem with high-interest rates. However, many are taking the opportunity to buy while stocks are at all-time lows, and some remain hopeful for a quick recovery in the coming year.
William does not own Porsche stock but owns shares in Tesla and many other automotive brands.
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Porsche therefore moves up to the leading index, which lists the 40 largest German stocks in terms of market capitalization and revenue on the Regulated Market of the Frankfurt Stock Exchange, just three months after its IPO on September 29. The decisive criterion for the ‘fast entry’ is the market capitalization of the free float.
Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT at Porsche AG, is pleased about the direct leap into the DAX: “Our fast entry into the DAX underscores two things. First: our business model is robust and attractive to investors, even in a challenging environment. Second: our definition of modern luxury is convincing, in focusing on sustainability and in assuming social responsibility. Our leap into Germany’s top 40 is the result of our hard work over the past years. My special thanks go to all my colleagues at Porsche. This success is the success of the entire team.”
Porsche Automobile Holdings (OTC: POAHY) is slated to enter into Germany’s blue-chip index over three months after its market debut.
The index lists the 40 largest German stocks in terms of market capitalisation and revenue on the Regulated Market of the Frankfurt Stock Exchange.
The decisive criterion for the fast entry is the market capitalisation of the free float.
“First: our business model is robust and attractive to investors, even in a challenging environment. Second: our definition of modern luxury is convincing, in focusing on sustainability and in assuming social responsibility,” said Lutz Meschke, Deputy Chairman of the Executive Board and Member of the Executive Board for Finance and IT.
The sportscar maker, Reuters reported, will replace sportswear maker Puma SE (OTC: PUMSY) on the DAX stock index on December 19.
Puma on the other hand will be moved down to the MDAX index.
Also Read: Volkswagen Plans Special Dividend From Porsche IPO In January
Porsche shares have gained over 30% since their September market debut in Germany.
Price Action: POAHY shares closed higher by 0.16% at $6.12 on Monday.
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Porsche’s supercharged market debut
Shares in Porsche rose in their trading debut this morning, after the sports car maker priced its initial public offering at the top end of its expected range last night. The long-awaited offering was an increasingly rare bright spot for I.P.O.s, but it may not be enough to revive the moribund market on its own.
Porsche’s stock opened at 84 euros, up nearly 2 percent over its I.P.O. price. (Fun fact: The company’s stock ticker, P911, and overall share count of 911 million are nods to its iconic 911 model.) Underwriters had expected strong demand for some time: The deal’s order book was oversubscribed within hours of being opened last week, DealBook has learned. Investors clamored for a piece of the I.P.O., with some going so far as to send pictures with their 911s to prove their Porsche fandom.
Among the points that Porsche emphasized during its I.P.O. roadshow were its healthy operating profit margins of 20 percent and the success of its battery-powered Taycan sedan, the first of what is expected to be many electric vehicle models in the modern era.
About 40 percent of the shares sold in Porsche’s offering went to four big investors, including sovereign wealth funds and the American money manager T. Rowe Price. An additional slug of shares was sold to the Porsche and Piech families that control Volkswagen (and will, thanks to a dual-class stock structure, hold sway over Porsche as well).