Porsche races into year's largest European IPO
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Porsche raised €8.2 billion in its IPO, pricing at the high end of its €76.50 to €82.50 per share range. Shares climbed in early trading on the Frankfurt Stock Exchange.
Why it matters: This is the year's largest European IPO, and the second-largest ever in Germany (behind Deutsche Telekom in 1996).
- It also means that Porsche's market cap is approaching that of parent company Volkswagen, whose shares fell as some investors appear to have switched allegiances.
Details: Volkswagen offered 911 million shares and the stock symbol is "P911," both homages to Porsche's iconic 911 model. Expectations are that VW will use proceeds for electrification efforts.
The bottom line: There are hopes that Porsche's debut could jumpstart both the moribund European IPO market and public investor interest in luxury carmakers (see chart below). But this is more likely to be an exception than the start of a new rule.
Go deeper: Why big IPOs are still happening
