Frankfurt, Sep 29 (IANS): Porsche shares have risen on their first day of trading as the sports carmaker shrugged off a worsening global economy in a 75 billion euros stock market float, the largest European listing for more than a decade, the media reported.
The shares were issued at 82.50 euros on the Frankfurt stock exchange on Thursday, before rising in value to 86.30 euros by late morning, The Guardian reported.
The German carmaker Volkswagen listed 12.5 per cent of Porsche's shares to raise the billions of euros needed to invest in electric cars -- as well as hoping the sports car company would be able to match its Italian rival Ferrari, which has been able to attract a valuation more typical of luxury fashion brands, The Guardian reported.
The deal raised 19.5 billion euros, about half of which will go to Volkswagen. Volkswagen intends to pay a dividend using part of the proceeds.
Volkswagen and Porsche have been intertwined since their foundations, when Ferdinand Porsche founded a car company in the 1930s, before designing the original "people's car".
While the companies will be listed separately, they will retain the same chief executive, Oliver Blume, suggesting there will be little departure in management style or strategic approach to the electric transition.
The spinout will, however, allow the Porsche-Piech family, Volkswagen's largest shareholder, to regain control of Porsche a decade after they ceded control of it to Volkswagen, The Guardian reported.