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Where to buy Porsche stocks? The company debuts on the stock exchange
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Where to buy Porsche stocks? The company debuts on the stock exchange

created Forex Club29 Września 2022

Porsche's debut on the German stock exchange is scheduled for Thursday, September 29, 2022. According to analysts, if the initial public offering of a well-known luxury car manufacturer goes according to plans, the market valuation of Porsche could increase to over EUR 75 billion. Can the IPO of the producer of the iconic 911 model be attractive for investments? 

It is worth mentioning that Porsche SE and Porsche AGto which the IPO relates are not the same companies. Already listed and available in XTB under the ticker PAH3.DE, Porsche SE is a company controlled by the Porsche-Piech family and the largest shareholder of Volkswagen. Porsche AG owns as much as 31,4% of all shares of the giant. At the same time, the company to which the IPO relates, Porsche AG, is a real manufacturer of luxury sports cars and belongs to the Volkswagen Group. 

Shares are expensive, but still attractive

The public offering covers 25% of the non-voting preference shares. Half of the 911 million shares offered will be acquired by Porsche SE, already listed on the stock exchange, and the company will pay a premium of 7,5% on the IPO price. The shares themselves in the public offering are to be offered to investors at a price in the range of 76,5 to 82,5 EUR. 

Porsche stocks

Source: Bloomberg, XTB Research Department

In the event of a successful issue, a Porsche valuation in the range of EUR 65 to 85 billion would lead Price / Profit ratio in the area of ​​12,6-16,5. For comparison, the projected C / Z ratio for Mercedes is 4,88, for BMW 5,0, for Ford it is 6,02, and for Ferrari - 32,43. According to HSBC analysts, a valuation of the company at the level of EUR 70-75 billion would make Porsche shares expensive compared to the competition. However, it is worth bearing in mind the results published by the sports car manufacturer in recent years. 

automotive companies

Source: XTB Analysis Department

Porsche AG's operating profitability grows year by year - in 2019, the company's operating profit margin was 13,5%, in 2021 it was already 16,0%. In the last year, Porsche AG's revenues exceeded EUR 33,1 billion, with reported profit before tax (EBIT) of EUR 5,7 billion. Porsche AG has been doing surprisingly well in such a demanding economic environment as we have seen for the past two years or so.

Where to buy Porsche stocks?

The public offering of Porsche AG was directed primarily to a foreign investor - Polish investors can purchase the giant's shares in secondary trading. The XTB brokerage house, which not only already has shares on offer, will help in this operation Porsche SE, but will also provide its clients with real-time quotes and trading on Porsche AG shares on the IPO day. 

 

In its offer, the XTB brokerage house has shares in over 3000 companies from 16 of the most popular stock exchanges in the world. Moreover, investing in real stocks as well ETFs up to EUR 100 are traded per month without commission*, and the minimum investment value of 10 EUR / USD / PLN will allow for exceptional freedom in selecting companies for the investment portfolio

*Up to a monthly turnover of EUR 100. Transactions above this limit will be charged a commission of 0,2% (min. EUR 10).


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Forex Club
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