Stock market: Porsche laughs, Puma cries
FOCUS, BRAND STRATEGY & COMMUNICATION, Uncategorized
by Hélène Cougot
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Porsche, which was floated on the stock exchange on 29 September, will join the Dax, Frankfurt's leading index, on 19 December. And this in place of Puma.
While the German luxury car manufacturer inspires confidence in investors, the same cannot be said of its sports equipment manufacturer compatriot.
Introduced at a price of 82.50 euros, the Porsche share has soared by nearly 30% in less than three months. The parent company, the Volkswagen group, received around 9 billion euros (8.9 billion Swiss francs) in exchange for the 12.5% of its subsidiary's capital.
This impressive IPO was hailed by the business press as one of the largest ever in Germany. It also stands out as the largest stock market transaction in Europe in the last decade.
An attractive business model
Lutz Meschke, Porsche's financial director, sees this as proof that "even in a difficult environment", its "business model is robust and attractive to investors".
The cash flow generated will facilitate the necessary investments towards an electric and autonomous car model.
On 19 December, Porsche will join the 40 leading stocks in the German economy on the Dax. Among them are other well-known automotive stocks, such as Volkswagen, the holding company Porsche SE (which controls the manufacturer and its parent company), Mercedes-Benz, BMW, Daimler Truck, etc.
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But by making its way onto the Dax, Porsche is also pushing Puma out. The latter is downgraded in the MDAX, the stock market index for medium-sized companies in Germany. Like many textile players, the sportswear and accessories brand is facing headwinds. Inflation is weighing on raw material prices and consumer purchasing power, and thus on sales. The crisis has been compounded by the defection of the company's captain, its managing director Bjørn Gulden. The transfer of the former professional footballer to competitor Adidas was announced in early November.
Read also> Web3 : Porsche unveils its first NFT collection
Featured photo : © Porsche
Hélène Cougot 7 December 2022
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