The billionaire initial public offering of the sports car manufacturer Porsche AG participating investment banks supported the share price with massive purchases in the first days of trading. 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.
Support purchases reduce proceeds for Volkswagen
To stabilize prices after IPOs, the investment banks involved can use Porsche AG shares from the so-called over-allotment option, known in technical jargon as “greenshoe”. But the parent company had Volkswagen and the banks reserved up to almost 15 million shares. With the placement of the Porsche preference shares, including the over-allotment option, Volkswagen raked in a gross amount of almost 9.4 billion euros, making it the largest German IPO since Deutsche Telekom in 1996. The banks’ support purchases from the placement reserve are reducing the proceeds for Volkswagen.
According to Porsche, the lion’s share of the shares went to large investors. Private investors only received 7.7 percent of the placement volume. Because the offer was oversubscribed, not all private shareholders could have been considered, it was said about the IPO last Thursday. Four anchor investors, including VW’s major shareholder Qatar, had already secured almost 40 percent of the shares in advance.
Among other things, Volkswagen intends to use the proceeds to invest billions in electromobility and finance digital. Almost 49 percent of the proceeds could go to the VW shareholders – an extraordinary general meeting is to vote on this in December. Also the VW employees in the company tariff and in Saxony waving a bonus of 2000 euros. Porsche has not yet officially announced the amount of a possible bonus for employees.
The Stuttgart-based company hopes that the IPO will be a step towards more independence again. In 2008/2009, Porsche tried to take over VW – that failed and the Lower Saxony company swallowed up the sports car manufacturer. Since then, Porsche has been considered a pearl of return in the VW Group.