How to Invest in Porsche Stock
On 29 September 2022, Porsche stock debuted on the Frankfurt Stock Exchange in one of Europe’s largest ever Initial Public Offerings (IPOs). Following this much anticipated IPO, many investors may find themselves wondering how they can buy Porsche shares, and, more importantly, whether they should in the first place.
In this article, we will take a look at the historic Porsche IPO, examine how to invest in Porsche stock and much more!
The Porsche IPO
In February 2022, Volkswagen AG first announced the possibility of spinning off Porsche AG – the most profitable of the company’s various brands - in a landmark IPO. It was subsequently revealed that, on 29 September 2022, the Porsche IPO would see 12.5% of the company’s equity listed on the Frankfurt Stock Exchange.
During the Porsche IPO process, up to 113,875,000 Porsche shares were sold at €82.50 – the top of the pricing range. This raised €19.5 billion for Volkswagen and indicated a valuation of €78.5 billion, making the Porsche IPO the largest IPO ever undertaken in Europe by market capitalisation.
Much of the capital raised during the Porsche IPO will be used to fuel investment by VW in electric vehicles, but a reported €9.4 billion will be paid out to VW shareholders in a one-off dividend payment.
Is Porsche a Good Stock to Buy?
After selling at the top of the IPO price range, Porsche shares rose almost 5% during their first trading day, before closing the session back down at €82.50. But, first day aside, is Porsche a good stock to buy?
Prior to its IPO, Porsche was entirely owned by Volkswagen AG which is, itself, also a public company. This means that we can access detailed information about the historic performance of Porsche by looking through Volkswagen’s earnings announcements.
Besides producing Volkswagen automobiles, Volkswagen AG owns a variety of brands, including Audi, Bentley and Lamborghini. As we mentioned in the previous section, of all these brands, Porsche is historically Volkswagen’s most profitable.
In 2021, revenue generated from Porsche sales rose 16.1% to €30 billion, whilst operating profit rose 24.5% to €5 billion. Porsche followed this up in the first half of 2022 with revenue of €17.9 billion and operating profit of €3.5 billion, increases of 8.5% and 24.6% year on year respectively. Furthermore, Porsche forecast revenue for the full year 2022 to come in between €38 billion and €39 billion.
Therefore, we can say with some confidence, that things have been going well for Porsche recently. Moreover, in the current climate of economic uncertainty and high inflation, luxury brands such as Porsche tend to attract increased attention from investors, due to their typically resilient demand.
Thus, Porsche stock could be worthy of investors’ consideration in 2022. However, before rushing off to buy Porsche shares, there are certain things to bear in mind. High inflation, war in Europe and a possible global recession are all significant headwinds which are currently facing, not just Porsche shares, but the entire global stock market.
Consequently, anyone considering investing in Porsche stock should be prepared for volatility and unpredictability in share price over the coming months.
How to Invest in Porsche Stock
Now we have evaluated some of the arguments for and against buying Porsche shares, let’s turn our attention to how to invest in Porsche stock.
With an Invest.MT5 account from Admirals, investors can buy Porsche shares and shares in over 4,300 other listed companies from around the world. In order to invest in Porsche, follow these steps:
- Open an Invest.MT5 account and log in to the Trader's Room
- Find the details of your account and click ‘Invest’ to open the MetaTrader Web Terminal
- Search for Porsche stock symbol (P911.DE) in the Market Watch on the left of the screen and drag the symbol onto the chart to open the Porsche price chart
- Click ‘New Order’ at the top of the screen to open an order window, enter the number of Porsche shares you want and click ‘Buy’ to send the order to the market.
Investing with Admirals
Investors who choose Admirals can choose from over 4,300 stocks and over 300 Exchange-Traded Funds (ETFs) from 15 of the largest stock exchanges in the world. Other benefits of the Invest.MT5 account include:
- Competitive transaction fees and no account maintenance costs
- Exclusive access to our Premium Analytics portal
- The ability to buy fractional shares in 700 of the world’s most exciting companies
- The comfort of investing with a broker which is authorised and regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Jordan Securities Commission (JSC) and other well-known financial regulators
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