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.
A Porsche spokesperson told City A.M. the company “has been extremely successful and highly profitable for many years” and that it is “ideally positioned in every aspect to be successful on the market on its own.”