The Dr. Ing. h.c. F. Porsche AG (P911) Story

Dr. Ing. h.c. F. Porsche AG debuted as a public entity valued at €75.2 billion after setting its IPO price at €82.50, which is the peak of its targeted range of €76.50 to €82.50. This move enabled it to garner approximately €9.2 billion, all directed to its parent company, Volkswagen. This marked it as one of the most significant IPOs not only in Germany but across Europe. Initially, when Volkswagen considered the IPO, there were anticipations of Porsche AG achieving a valuation nearing €90 billion. However, this expectation dwindled due to unfavourable market conditions in 2022.

Interestingly, there were critiques regarding the high IPO valuation. A few weeks prior to the IPO, HSBC estimated the company's worth to be between €44.5 billion and €56.9 billion. HSBC also pointed out the importance of Porsche AG's degree of autonomy in shaping its public perception, especially since it will continue to be governed by its current shareholders post-IPO and will share its CEO with Volkswagen.

In 2023, Porsche stands robust in every aspect. Their cars are selling as quickly as they roll off the production line. With plans to expand their workforce, a substantial bank balance, and a lucid strategy in place, they have unequivocally showcased their prowess in generating profits by producing quality vehicles.

From the late-2022 to early-2023 IPO, investors enjoyed an average net return of 31%.