On Thursday, Porsche overtook its parent company Volkswagen as the most valuable automaker in Europe as its newly-listed shares soared.
On Monday, the shares of the sports car manufacturer plummeted from its listing price of €82.50 per share to €81.00, in line with a broader plunge in markets. Yet, it rebounded higher to €93.00, giving it a brand market valuation of €85.00 billion.
The company regained momentum after investment banks involved in its flotation bought roughly 3.80 shares for €312.80 as part of the greenshoe option, designed to support a listing.
This increase pushed Porsche’s valuation beyond Volkswagen’s €77.70 billion valuations.
On the third spot comes the European carmakers Mercedes-Benz and Stellantis, with a market capitalization of €57.20 billion and €39.70 billion.
Volkswagen stated that shares purchased from Porsche between September 29 and October 04 represented approximately 11.00% of the total trading volume since the entity’s listing, which consists of roughly 34.00 million shares.
In total, up to 14.85 million shares worth €1.20 billion are available through the greenshoe option in the four weeks following the offering stabilization measure.
On Wednesday, Bank of America revealed that its shares from Porsche are between €81.00 and €82.50.
Volkswagen to Invest over €1B in China
Porsche’s parent company, Volkswagen, aims to make a significant investment worth more than €1.00 billion in its joint venture with China for software production.
The luxury carmaker is waiting for the result of the elections that will take place on Sunday in the state of Lower Saxony, which is Volkswagen’s second-largest shareholder with two seats on its supervisory board, before making an official public announcement.
The German automaker, which accounts for roughly 40.00% of sales and half of its profits in Beijing, is already researching and developing vehicle technology in the Asian nation.
According to reports, China was seen as a more developed digital innovation market than Europe and the United States.