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On September 29, Porsche, a luxury car brand owned by the German Volkswagen Group, was officially listed on the Frankfurt Stock Exchange under the symbol P911, with an opening price of 83.10 euros. It rose to 86.78 euros in intraday trading and finally closed at 82.58 euros per share, down 1.69% from the opening price.

This is the third ultra-luxury brand to enter the capital market after Ferrari and Aston Martin. It is the second largest IPO in German history and the third largest IPO in European history. Porsche has become the fifth largest automaker in the world with a market capitalization of $75.86 billion, after Tesla, Toyota, BYD and Volkswagen, and higher than Mercedes-Benz, according to the latest market capitalization list.

In honor of the classic 911 model, Porsche issued a total of 911 million shares, including 455.5 million preferred shares and 455.5 million common shares under the ticker symbol "P911". It is understood that the four cornerstone investors participating in the IPO-- Qatar Investment Authority (Qatar Investment Authority), Norwegian sovereign wealth fund, Putonghua Group (T. Rowe Price) and Abu Dhabi investment group ADQ-- subscribed for 1.88 billion euros, 750 million euros, 750 million euros and 300 million euros respectively, subscribing for a total of about 3.68 billion euros of preferred shares.

Volkswagen Group has many car brands, including Volkswagen, Skoda, Audi and other car brands that win by volume, as well as top luxury brands such as Porsche, Bugatti and Lamborghini, but Porsche is undoubtedly the best player in the group.

The relationship between Porsche and Volkswagen begins with the legendary Ferdinand Porsche, a world-renowned designer who helped design Volkswagen's later popular Volkswagen Beetle in the 1930s. In 1931, Ferdinand Porsche founded a company called Porsche GmbH, the predecessor of Porsche, in Stuttgart, the heart of the German automobile industry. In 1948, Feri Porsche, the son of Ferdinand Porsche, built a car called the Porsche 356based on the Beetle, the first car named after the Porsche. In 1963, Porsche made its debut at the Frankfurt Motor Show on the 911 model, which is regarded as the most important model in Porsche history.

In the 1990s, Ferdinand Piech, the grandson of Ferdinand Porsche, ran away from the Porsche-Pi ë ch family and joined Volkswagen Group, where he was promoted to CEO. In 2005, Porsche SE (Porsche Holdings) announced the acquisition of 8.27% of Volkswagen Group, together with its original 10.26% stake, making it the largest shareholder of Volkswagen Group, with more than 50.8% of the shares by January 2009. In 2008, when Porsche sales plummeted as a result of the financial crisis, Volkswagen, led by Ferdinand Pi ë ch, fought back by buying a 100 per cent stake in Porsche Holdings for about 8.46 billion euros. Currently, the Porsche-Pi ë ch family is the largest shareholder in the Volkswagen Group and currently holds a 53.3% stake and voting rights in the Volkswagen Group through Porsche Holdings.

Why choose Porsche to go public instead of Audi or Lamborghini? Porsche's sales revenue from 2019 to 2021 was 28.515 billion euros, 28.695 billion euros and 33.138 billion euros, respectively, and after-tax profits were 2.801 billion euros, 3.166 billion euros and 4.038 million euros, respectively, according to the prospectus. In the first half of 2022, Porsche achieved sales revenue of 17.922 billion euros, an increase of 8.5 percent over the same period last year, and a sales profit of 3.48 billion euros, an increase of 24.6 percent over the same period last year, while Volkswagen made an operating profit of 13.2 billion euros in the first half of the year. Porsche contributed 26.4 percent of the operating profit to the Volkswagen Group.

Porsche's gross margin has also been stable, with 28.2% in the first half of this year, 25.5% from 2019 to 2021, 26.3% and 26.7%, respectively. At present, Porsche's core sports car products include six major model series, including 718,911, Taycan, Panamera, Macan, Cayenne, among which Cayenne and Macan are Porsche models with high demand. Porsche sold 145900 vehicles worldwide in the first half of 2022, including 38000 Macan, 41900 Cayenne, 18900 Taycan, 21600 9 / 11 and 15600 Panamera, according to the prospectus. In addition, the global sales of Porsche from 2019 to 2021 were 280800, 272200 and 301900, respectively.

Regionally, the Chinese market remains Porsche's largest single market. In the first half of 2022, for example, it delivered 145900 new cars worldwide, of which 40700 came from the Chinese market, with a market share of 27.89%. In addition, Porsche's sales in China from 2019 to 2021 were 86800, 89000 and 95700 respectively, with a market share of 30.91%, 32.70% and 31.70%, respectively.

Why did Volkswagen let Porsche go public independently? It is widely believed that Volkswagen hopes to raise more money through Porsche's listing to pave the way for its transformation into electric vehicles. It is understood that Volkswagen sold 12.5% of the total share capital of Porsche, and the listed shares are expected to bring 8.71 billion to 9.33 billion euros to Volkswagen Group, which can be used to invest in key areas such as electric cars, self-driving technology and software development. Industry insiders said that Porsche market performance is excellent, the financing value cannot be realized within Volkswagen Group, and many investors will be optimistic if it goes public independently, not to mention that this financing will promote the electric transformation of Volkswagen Group.

Nowadays, the development of electrification is sweeping the global car market, and at the same time, it also makes waves in the capital market. Porsche says more than 50% of new car deliveries by 2025 will be pure electric vehicles, and that number will be 80% by 2030.

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