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?