Porsche IPO

[sliksunny]

https://seekingalpha.com/article/454367 ... ed-to-know

It is confusing but going to dabble because I am a fan. Today is the day…

[911R]

I watched it this morning (POAHY):
5.87 USD
−0.91 (13.42%) today
Sep 29, 11:35 AM EDT •

52-wk high $11.02
52-wk low $5.75

It's 13% cheaper today than it was.

The market cap is the 5th largest auto company in the world at $79B. Tesla is still the biggest at $886B with Toyota next.

[Tom]

I watched it this morning (POAHY):
5.87 USD
−0.91 (13.42%) today
Sep 29, 11:35 AM EDT •

52-wk high $11.02
52-wk low $5.75

It's 13% cheaper today than it was.

The market cap is the 5th largest auto company in the world at $79B. Tesla is still the biggest at $886B with Toyota next.

Is POAHY an interest in the holding company Porsche SE, or Porsche AG that just went public? As best I can piece it together from news stories (always suspect) the company that went public is Porsche AG, which is owned 12.5% (plus 1 share) by Porsche SE, 12.5% by the 'public' via the IPO, and 75% (minus 1 share) by VW. What I read is that investors were shifting away from Porsche SE, causing its price to drop (reflected in the price quotes you shown above), and moving over to Porsche AG. As I understand it, Porsche AG went out at the high end of its range and traded up slightly on its first day. Investors are shifting away from Porsche SE (driving down its price) because it has large ownership interest in VW (~31%), along with its 12.5% interest in Porsche AG, and investors who are high on Porsche see Porsche AG as more of a pure Porsche play (unencumbered by VW's results). That's how I'm interpreting things, but I could have that all wrong, so happy to be educated if so....

[911R]

Tom,
POAHY is the stock symbol for the ADR shares of Porsche SE. They issued 911M shares of Porsche AG which are traded on The Frankfurt Stock Exchange.

We would have to go to Europe with Euro's to buy those shares. We would have to leave them there. It's due to complex Security regulations (we have the SEC that controls our markets).

It's all in digital codes today. I say that ~20 years ago, you could get a Stock Certificate. I'd buy 100 shares to get the Certificate showing my very fractional ownership of Porsche AG.

It's a complex deal to say the least. Plus, the entire world is in a bear market (defined as down 20%+). I am watching many other IPO's this year, and 70% of them are now trading below the IPO price (not a good sign to me).

I'd quote with links, but the WSJ is a paid site.

BTW, you can google 'POAHY stock price' to get an ADR quote.

[Tom]

Tom,
POAHY is the stock symbol for the ADR shares of Porsche SE. They issued 911M shares of Porsche AG which are traded on The Frankfurt Stock Exchange.

We would have to go to Europe with Euro's to buy those shares. We would have to leave them there. It's due to complex Security regulations (we have the SEC that controls our markets).

It's all in digital codes today. I say that ~20 years ago, you could get a Stock Certificate. I'd buy 100 shares to get the Certificate showing my very fractional ownership of Porsche AG.

It's a complex deal to say the least. Plus, the entire world is in a bear market (defined as down 20%+). I am watching many other IPO's this year, and 70% of them are now trading below the IPO price (not a good sign to me).

I'd quote with links, but the WSJ is a paid site.

BTW, you can google 'POAHY stock price' to get an ADR quote.

Right, but POAHY is an ADR for Porsche SE, which I believe is not the company that just went public. Porsche SE is a holding company that owns 30+% of VW and 12.5% of of Porsche AG. Porsche AG is the company that went public (with the symbol P911 on the Frankfurt exchange). Porsche AG is owned 12.5% (plus 1 share) by Porsche SE, 75% (minus one share) by VW, and 12.5% by the 'public' via the IPO. If you invest in Porsche SE and/or POAHY you are investing in a company that owns a big stake in VW, rather than just Porsche. Reportedly, that's why the price of Porsche SE (and POAHY) tanked today -- because people were selling that to buy the pure Porsche AG stock (P911) in the IPO. Porsche AG is also the company that issued the 911 million shares (half of which went to Porsche SE). I don't know if there is an ADR of Porsche AG (P911) yet, but assume there will be soon enough....

I have not really studied the filings, but that's how I understand it from the news reports. I am/was a corporate attorney with lots of experience with the SEC and corporate structuring, and this is how it all reads to me for what it's worth....

[911R]

....I have not really studied the filings, but that's how I understand it from the news reports. I am/was a corporate attorney with lots of experience with the SEC and corporate structuring, and this is how it all reads to me for what it's worth....

Tom,
I am not surprised that you are a J.D. Your prose is such (a compliment).

I am a SEC Registered Investment Adviser (since the 1990's). I have also not read all of the filings. I knew I wouldn't buy it due to the over 50% control of other entities. You are familiar with things that may happen to minority shareholders when one person or company has complete control? It can be good for the small investors, but the odds are not good. IMO.

In the current market, it's not good for the buyers. I am looking at a few public retirement plans that borrowed money to increase their exposure to the stock market last year. That was a bad move. This can expand the current Bear market to lower lows. I remember stagflation.

And POAHY hit a new low today. I didn't see large blocks trading so it was likely small investors.

The good news is that we have an 80% chance of a good October after a bad September.