By Ilaria Grasso Macola
Porsche has overtaken parent company Volkswagen as Europe’s most valuable car maker as its valuation increased to around €84bn (£73.5bn) a week after its IPO.
The luxury car maker’s value was initially pushed up to €85bn as shares surged to €93 earlier this morning.
But even though shares stabilised to around €91 by lunchtime, Porsche’s valuation remained €6.3bn higher than that of Volkswagen.
Despite slumping below the issue price of €82.50 on Monday, Porsche’s price regained momentum after banks involved in the listing invested €312.8m and bought 3.8 million shares.
The purchase was part of Porsche’s greenshoe option, which allows a company to sell more shares than initially planned to meet higher-than-expected demand.
According to a Volkswagen spokesperson measures such as the greenshoe option are a standard practice during the first few days of a new IPO.
“News from Europe and the US on September inflation data, renewed concerns about energy supplies in Europe last Thursday, and a worsening of the situation in Ukraine with Russia’s annexation of territory have led to just such fluctuations and made minor stabilisation measures necessary,” they said.
Following Porsche’s floating – the second-biggest listing in German history since the 1996 debut of of telecom company Deutsche Telekom – Volkswagen and its €77.7bn valuation fell to second place, followed by the likes of Mercedes, BMW and Stellantis.
City A.M. has approached Porsche for comment.
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