Porsche gets ‘fast entry’ into German stock index

MANILA: Porsche AG has fast-entered the German stock index (DAX) just 81 days after making its debut on the Frankfurt Stock Exchange.

On December 19, 2022, the Frankfurt Stock Exchange's trading floor announced that Porsche AG had been included to the list of the top 40 largest by market capitalization and most profitable German stocks.

“We’re delighted and proud to have gained fast entry into Germany’s top 40. Our fast entry into the DAX shows that investors around the world have confidence in our attractive business model and the potential of our company,” Porsche AG Executive Board Chairman Oliver Blume stated.

According to the German Stock Market, Porsche AG was admitted to the DAX on December 19, 2022 under its “fast entry” guidelines. The free-float market capitalization is the primary requirement for a fast entry. Since September 29, 2022, the preferred shares of Porsche AG have been traded on the regulated market on the Frankfurt Stock Exchange (Prime Standard). The share price increased by 14% to €94.58 by the time trading ended on December 16, 2022. By then, the market's total value was €89.4 billion. Porsche is also included in the MSCI and STOXX indices.

“Our share price has risen strongly since September despite global headwinds. We see the  development of the share price as a validation of our hard work. The future is traded on the stock market,” Porsche AG Executive Board Deputy Chairman and Executive Board for Finance and IT Member Lutz Meschke said.

Meschke added that he is satisfied with the outcomes so far after only three months as a listed company. “We’re particularly pleased by the broad acceptance of Porsche shares. Our investors are broadly diversified, and we have a sizable share of retail investors. By going public, we’ve made Porsche tangible. Many of our retail shareholders do not own one of our products, but they can now be a part of the Porsche family,” he said.

Around 170,000 private investors placed buy orders for Porsche stock before the IPO, with more than a third subscribing for shares of fewer than 10 units.

“We will continue to do everything in our power to inspire customers with exciting vehicles and delight our shareholders with impressive financial results,” Meschke stated.

Porsche anticipates an operating group return on sales of 17% to 18% for the full year 2022. The medium-term target is somewhere between 17% and 19%. Porsche's long-term goal is to attain a Group return on sales of more than 20%.

Despite the fact that Porsche operates globally and is well-known all over the world, its stock is exclusively traded on the Frankfurt Stock Exchange.

“We’re dedicated to trading in Frankfurt. With our clear commitment, we’re delighted to contribute to strengthening Germany’s position as a financial center. We have many shareholders in Germany and will remain a German company. We will remain committed to ‘Made in Germany’ and ‘Engineered in Germany,’” Meschke said.

Porsche has more autonomy and entrepreneurial freedom as a listed company, both of which the company plans to use to further strengthen its position.

“We represent modern, sporty luxury – indeed, we redefine the concept. Our objective is to unite the desirability of our products with sustainability and social engagement. We are proud of our special Porsche culture and of our tradition,” Blume stated.

This year, Porsche will commemorate a number of milestones, including the anniversary of the brand under the theme “75 years of Porsche sports cars.”

“We’re transporting our tradition into the future. We’re combining it with our pioneering spirit, with innovation and progress and we’re giving the Porsche legend fresh impetus in the process,” Blume said.

Social responsibility has also been a longstanding tradition at Porsche. The sports car manufacturer is strengthening its social responsibilities as part of going public: the Porsche AG Executive Board has chosen to give the Ferry Porsche Foundation an additional €5 million. This entails that more funds are accessible to support charitable programs, especially those that focus on social and educational causes as well as initiatives for children and young adults. Porsche AG additionally contributes €9.11 million to the foundation's endowment, bringing the total to €33.11 million.

The Ferry Porsche Foundation, which was established in 2018, organizes and supports charity programs in the fields of social welfare, the environment, education and research, culture, and sports. Formed as part of Porsche AG's social commitment, the foundation aims to help young people at its different locations. It is named after the brand's founder, Ferry Porsche, who established the company in 1948.

Photos from Porsche

Also read: Porsche 911-focused exhibitions showcased at Singapore Art Week 2023