Tuesday, November 29, 2022

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Porsche IPO brings billions to VW

Porsche’s IPO has been successful so far: Bank of America has prematurely stopped supporting purchases, Volkswagen is waving billions.

The IPO of the Porsche sports car subsidiary leads the Wolfsburg car manufacturer

Volkswagen 9.08 billion euros. Bank of America (BofA Securities) suspended its support measures – which were actually planned for four weeks – after it stabilized above the € 82.50 issue price, as announced by the bank. US business.

The over-allotment (greenshoe) option was partially exercised, so that 110.1 million Porsche shares are now listed on the stock exchange. 24.2 per cent of the preference shares are therefore free float.

In the first few days after the initial listing, the bank bought 3.79 million Porsche stocks from the placement reserve for € 312.8 million on the market in order to stimulate demand and reduce supply. This should prevent the price from falling too far below the issue price. Subsequently, the Porsche share rose to 93.70 euros, on Tuesday it was 86.10 euros. Support purchases are only permitted up to the issue price.

Overall, Volkswagen can expect more than 19 billion euros from the partial sale of Porsche AG. The listed family holding Porsche SE has already paid almost € 7.1 billion to Volkswagen for 17.5 percent of the common stock. Another 7.5 percent will follow for three billion euros in early 2023, as VW distributes some of the proceeds from the IPO to shareholders as a special dividend. Porsche SE is Volkswagen’s largest shareholder and can only count on three billion euros.

Porsche’s IPO has been successful so far: Bank of America has prematurely stopped supporting purchases, Volkswagen is waving billions.

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