Can I buy Porsche stock? Porsche is one of the most recognized sports and luxury car brands in the entire world. Many car enthusiasts dream of owning or even driving any of the most iconic models made by Porsche across all their decades of operation. The 911 model is the most famous among them. It was certainly a factor when Porsche AG decided to go public, release 911M shares for its IPO, and name the stock tiller P911 on the Frankfurt Stock Exchange.
It was Europe’s hottest and biggest IPO ever. Many questioned the timing and motives for this IPO as the markets were very fragile. However, since going public in September 2022, the stock rose by over 30%. Will this stock keep rising, or is it too late to join the hype? Let’s find out.
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Porsche Introduction (No Stock Symbol)
Porsche AG began in 1931 in Germany, more precisely in Stuggart. The company began as a car designer and consultant. Its first assignment was to build a car for the people, which resulted in the Volkswagen Beetle. Fast forward a few years to World War II, Porsche was in charge of designing military vehicles, tanks, and other automobiles for Germans.
After the war, car parts were more difficult to come by in Europe than in the US or Asia. The war left many producers a little shaken up. Porsche turned to VW for various parts and needs. Fast forward, and VW owns the majority of Porsche. Similarly, VW’s top shareholder is Porsche’s parent company, Porsche SE.
What was once a family company became under the control of one of the biggest car-makers in the world. This was the case for decades, up until recently. As of July 2022, Porsche and Volkswagen share the same CEO, Oliver Blume. He intends to give back to the Porsche family what was once theirs. Can I buy Porsche stock?
Fun fact: Porsche is responsible for Adolf Hitler’s first vehicle.
Porsche Stock IPO
As mentioned earlier, Porsche AG went public on September 29, 2022, on the Frankfurt Stock Exchange. The company released 911M shares. Half of those are ordinary Porche stock shares that carry voting rights.
However, they will not be available to the general public. 25% of those shares are already secured by Porsche SE (VW’s top shareholder) at a 7.5% premium. This will give some of the control back to the Porsche family. Porsche’s parent company, VW, controls the rest of the shares.
It plans to use the proceeds to fund its electric vehicle transition and to challenge Tesla for the throne. The remaining 50% will be preferred shares. Shareholders are not able to vote on any company matters.
What Does This Mean for Investors?
Ultimately, future Porsche stock shareholders will have no say in the company, no matter how many shares they purchase. Unless you plan on becoming a member of the Porsche family, your opinion won’t matter when it comes time to make an important decision.
The IPO was a way to give some control to the Porsche family while funding Volkswagen’s plans for the future. Despite all this, the IPO has gathered a lot of interest worldwide. Since its IPO, the hype proved to be real.
Porsche’s valuation can be compared to other carmakers in the industry based on its forecasted earnings and PE ratio. It is currently above what Mercedes-Benz (OTCMKTS: MBGYY) and BMW (OTCMKTS: BMWYY) trade at but below Ferrari’s (NYSE: RACE) valuation. The latter went public in 2015 and has raced ahead of its competitors. Will Porsche follow in Ferrari’s footsteps? Both carmakers share the same market space.
What’s Next for Porsche?
Porsche recently released details for its 2024 Cayenne model. It will be a plug-in hybrid model and a direct competitor to other electric carmakers. The company also produces limited-edition models, such as the 900 Rocket R, which will be limited to only 25 units. Imagine owning a 900HP car that can go 0-60mph in 2.5 seconds. Expect more exciting news and releases from Porsche. Maybe even Porsche stock to trade.
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How to Buy Porsche Stock
Buying Porsche stock may be confusing as it is listed in Europe and the US. Furthermore, another Porsche stock is used as a parent company to VW. Let’s look at the breakdown to eliminate any confusion for investors.
- OTCMKTS: POAHY is the stock ticker on the US OTC, but it is the parent company owned by VW. This isn’t the one you want to buy.
- OTCMKTS: DRPRY is the stock ticker you want to buy if you want to invest directly in Porsche on the US stock market.
- ETR: P911 is the stock ticker you want to look for if you can access the Frankfurt Stock Exchange.
Potential Future Automobile IPOs
In this final section, we will look at some of the most popular carmakers in the world that aren’t public yet. Will they also make the move to go public? Let’s find out.
1. Rimac
Rimac might not be the first name that comes to mind in this section, but bear with me. It set the world record for the fastest electric car at 258mph. The Croatian carmaker recently raised over $500M but doesn’t see an IPO until revenues reach $1B. The recent round values the company at $2B. Rimac has a joint venture with Bugatti for an electric vehicle and is 45% owned by Porsche AG, which means Volkswagen is also in this operation. Rimac seems to be in good hands and leadership. Now, the addition of Rimac in this section makes sense. Rimac plans to ramp up production and staff with the money raised.
Back to the Rimac x Bugatti partnership. Both companies are working on the Nevera model, a 1900-horsepower 100% electric supercar. Sources say orders are very strong in the US. However, the Nevera comes with a $2.1M price tag. On the other hand, Bugatti is finishing the touches to its brand-new W16 Mistral Roadster. There will only be 99 examples produced, with a price tag of $5M! There is a lot of excitement around this partnership. If both companies can put their money where their mouth is, their cars can drive in the wild sometime this decade.
2. Renault x Ampere
Next on the list is the French carmaker Renault (OTCMKTS: RNLSY). The company is already listed but is planning an IPO for its EV segment, Ampere. Maybe it’ll give Porsche stock a tun for its money.
There is little news about the IPO, but it is anticipated to debut in the second half of 2024. However, we do know that some banks are already targeted for the IPO, and the funds will be used to catch up to major EV companies.
According to many sources, there will be a considerable investment from Mitsubishi, Nissan, Stellantis, and Qualcomm. Keep an eye out for more news on the Ampere IPO in the next months, as it is a very exciting opportunity.
Final Thoughts: Porsche Stock
To conclude, Porsche stock is finally available to investors. You can purchase its shares on the US OTC market or the Frankfurt Stock Exchange. Since debuting, the stock has grown by over 30%, and there is still room for more growth. Porsche is looking to enter the EV market and is inciting other big companies to follow. This is a big marker as we slowly try to move away from fossil fuels. Keep an eye out for this industry.
Frequently Asked Questions
Porche stock is set up differently than most. It's split in 2 with ordinary shares and preference shares.
Porche stock is trading on the OTC market at under $10. The price has been in a downtrend lately.
Porche IPO'd on the Frankfurt market. However, it does have OTC shares under $DRPRY.
