Porsche AG shares had a see-saw start on Thursday after Volkswagen defied volatile markets to list the sports car brand at a valuation of 75 billion euros ($72 billion) in Germany’s second-biggest market debut.
Porsche AG shares closed at 82.50 euros ($80.74), reverting to their issue price after reaching a session high of 86.76 euros. Volkswagen shares were down 6.9% to 128.5 euros at the close on Thursday. It is the largest listing in Germany since Deutsche Telekom in 1996. Despite broadly lower stock markets, Volkswagen priced Porsche AG shares at the top of the range. The listing broker set a record, earning the most since Deutsche Telekom in 1996. Porsche is selling at a ratio of roughly 7.2 times profits, which is far lower than Ferrari’s multiple of 40. In the initial public offering, up to 113,875,000 Porsche AG preferred shares with no voting rights were sold.
Bank of America, Citigroup, Goldman Sachs, and JPMorgan served as joint worldwide coordinators and joint book runners on the transaction, while Mediobanca served as Porsche’s financial adviser.