Quantum Wealth Summary

 

  • Last week, Europe saw one of its biggest IPOs in a decade: Porsche AG [ETR:P911].
  • On 29 September, Volkswagen (VW) floated 12.5% of Porsche, raising around €9 billion.
  • The ownership structure is complex, but the new stock allows retail investors to take a slice in Porsche.
  • Since the float, the shares have had a choppy run before rising around 6%.
  • Porsche features industry-leading profit margins. Could these shares offer turbocharged growth when the economy recovers?

 

 

The Porsche 911 is one of the world’s great sports cars.

I’ve had the pleasure of driving a couple of them over the years.

I had a friend in Jersey who used to hand me the keys. And we’d go for a blast down the country lanes. Though the roads (and speed limits) were too short and narrow to allow the car much more than a trot.

 

Source: Collecting Cars

 

Then, in Auckland, a friend bought a 911. Where there was some more room to stretch its legs. And a very different driving experience to his Rolls-Royce Phantom.

The Porsche 911 is a memorable drive because it feels like an authentic sports car. A squat, racy driving position, with loads of power on tap that risks making every trip a thrill. Not as enjoyable as the Alfa Romeos I’ve driven — but still a classic.

So, when Porsche shares were floated last week, this got my blood pumping.

I set about taking a look.

Do the IPO shares offer genuine value? Especially after they’ve stumbled since the Thursday opening?

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