Porsche: Banks supported IPO with hundreds of millions of euros
Created: 06/10/2022, 10:45 am
By: Lisa Mayerhofer
The logo of the car manufacturer Porsche can be seen on a display at the Porsche Center in Stuttgart.
© Marijan Murat/dpa/symbol image
Last week, Porsche completed the largest German IPO since Telekom in 1996.
Banks have strongly supported the course of the sports car manufacturer.
Frankfurt/Main – Despite the tense financial markets, the sports car manufacturer Porsche AG ventured onto the trading floor last Thursday.
In the first few days of trading, the investment banks involved in the multi-billion IPO supported Porsche's share price with purchases.
Porsche: Banks spend 313 million euros on support purchases
From September 29 to October 4, they acquired a total of almost 3.8 million shares via the Xetra trading system and other trading venues, spending almost 313 million euros, according to a mandatory announcement by the major US bank Bank of America on Wednesday evening.
Bank of America is the coordinating financial institution among the underwriters involved.
The Porsche AG preference shares were issued on Thursday a week ago for EUR 82.50 each and threatened to fall below this mark several times in the first few days of trading.
Last Monday, the price then fell to its previous low of 81 euros.
In the meantime, the paper has risen significantly with the upswing on the stock exchange and reached its high of EUR 89.64 the day before.
The titles recently closed in Xetra trading at EUR 87.92.
Support purchases reduce VW proceeds from Porsche's IPO
With the IPO of the sports car subsidiary Porsche, Volkswagen collects almost 9.4 billion euros.
However, since the banks involved then had to stabilize the share price with their support purchases worth millions, this should reduce VW's proceeds accordingly.
Volkswagen hopes that the proceeds from the Porsche IPO will give it more financial flexibility in the transformation towards electromobility and digitization.
(lma/dpa)