Shares in Porsche have dropped beneath the price they commanded when the sports car firm hit the market three trading days ago.
Porsche launched onto the stock market last Thursday with a €75 billion ($72 bn) valuation that raised $19.5 bn ($18.7 bn), around half go which will go to Volkswagen, who will use it to fund EV development.
Shares opened at €82.50 ($80.87) last week then rose slightly in the initial hours after the IPO, making Porsche a bright spot in a financial market feeling jittery about an inbound recession. But proving that even Porsche can’t buck the market, shares in the automaker fell to €81 ($79.40) when trading resumed on Monday before recovering slightly to €81.48 ($79.87).
One banker Reuters spoke to said that while Porsche’s shares had fallen in price, they were doing well compared to drops seen in the wider market, and had managed to hold their price for the first two days of trading. Reuters reports that the autos sector is down 5.6 percent and parent company, Volkswagen Group, down a steep 10 percent since Thursdays’ Porsche IPO.
Despite price fall, Porsche’s IPO hasn’t been a first-corner pile-up, like Aston’s
Porsche’s listing has so far certainly worked out better than Aston Martin’s did four years ago this month. Hoping to emulate Ferrari’s successful IPO, Aston opened at £19 ($24.70 at the time), giving the company a £4.1 billion ($5.3 bn) valuation, although it had been hoping for a figure as high as £5.1 billion as late as the week of the launch.
By the end of the first day of trading in October 2018 the shares had fallen to $18.10 ($23.60), though there was definitely much worse to come. Aston’s shares plummeted to a historic low of £1.29 ($1.47) last week when its attempt to raise more money by selling discounted stocks floundered, after which Chinese auto group Geely acquired 7.6 percent of the British firm.
