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How To Invest In Porsche AG IPO: Buy Porsche Stock

Toni Nasr, CFA, FRM| Updated September 29th, 2022
Porsche Ipo stock

Porsche’s newly issued shares are already trading on the Frankfurt Stock Exchange under the name Porsche AG and ticker P911.DE (not to be confused with ticker PAH3.DE – Porsche Automobil Holding SE)!

In this article, we’ll explain everything you need to know about the Porsche AG IPO, including how to buy the newly issued Porsche AG stocks, and the stock itself.

When Was the Porsche AG’s IPO Date?

Porsche’s IPO date was on the 29th of September, 2022. The offering period commenced on 20th September 2022 and ended on 28 September 2022. It was one of the biggest IPOs in the German stock market history and started trading at €82.50 valuing Porsche AG at €75 billion. Porsche AG’s revenues reached €33.1 billion in 2021, and expected revenue between €38 billion and €39 billion in 2022, despite the business environment headwinds.

How to Order Porsche AG Stock?

We will present you with the trading platforms that allow you to invest in Porsche AG stock! Our criteria included fees, trading platform, regulation, customer support, among others! Here our top pick:

Interactive Brokers

Founded in 1978, Interactive Brokers is a global online broker that provides advanced web and mobile trading platforms, and offers a vast array of financial products (stocks, options, mutual funds, ETFs, futures, bonds, and currencies) from over 150 markets.

eToro

Established in 2007, eToro is one of the leading online brokers known for its social trading platform, with over 25 million users. It gives access to different products such as CFDs, ETFs, stocks, commodities, Forex, and cryptocurrencies.

Freedom24

Freedom24 is one of the leading online brokers that lets you invest in stocks at IPO prices, in addition to ETFs, stocks, bonds, futures, and options. It was founded in 2008 and currently has over 400,000 clients.

In the following reviews, we discuss the features of each trading platform, where each broker differs in terms of pricing, accessible markets and instruments, and other special features.

#1 Interactive Brokers

How To Invest In Porsche AG IPO: Buy Porsche Stock 1
Visit Interactive Brokers

Interactive Brokers at a glance

Offers Porsche AG stock
Products availableStocks, ETFs, Options, Futures, Forex, Commodities, Bonds and Funds
Minimum Deposit€/$0
RegulatorsFINRA, SIPC, SEC, CFTC, IIROC, FCA, CBI, AFSL, SFC, SEBI, MAS, MNB
Fees$0.0035 per US stock (min. $0.35 per order)

Interactive Brokers caters both to beginners and professional investors looking for educational materials and an easy-to-use platform and advanced technical and fundamental trading tools, and for in-depth research. Investors can use Interactive Brokers’ web-based Client Portal trading platform, as well as the IBKR GlobalTrader Mobile app and the professional Trader Workstation platform.

The TWS platform is easy to use and includes many standard features such as watchlists, alerts, and real-time monitoring, in addition to advanced tools, such as the volatility lab, which is a brief overview of a stock’s past and future volatility parameters, as well as its industry peers and the broader market. In addition, it has advanced technical analysis tools with over 120 indicators and many other highly customizable features.

Buy Porsche AG Stock – IBKR Trader Workstation (TWS)

IBKR is a great option for retail investors interested in trading international stocks, ETFs, bonds, futures, options, and even penny stocks. It is ideal for beginners or professionals looking for a large number of instruments and a secure broker. Nearly all Europeans can open an account at IBKR.

On the downside, if you are new to investing, you might find the platform a bit complicated with too many buttons and features. You can read our IBKR review for more information.

#2 eToro

How To Invest In Porsche AG IPO: Buy Porsche Stock 2
Visit eToro
78% of retail CFD account lose money.

eToro at a glance

Offers Porsche AG stock
Products availableETFs, Stocks and CFDs on Commodities, Forex, and Cryptocurrencies
Minimum Deposit$10 in the UK (it varies between countries)
RegulatorsFCA, CySEC, ASIC
Fees$0 for stocks and ETFs

eToro is an international online broker with over 25 million users who trade stocks, forex, commodities, cryptocurrencies, CFDs, and ETFs. It is known for its social trading feature, where you can copy the trades of other experienced traders. There are thousands of verified traders on eToro, and you can pick the best trader based on past Return on Investment (ROI), risk profile, or other factors.

The eToro platform gives users access to over 3,000 financial instruments and offers commission-free trades on stocks and ETFs. Additionally, users can invest in ready-made investment portfolios (Smart Portfolios), a group of several assets or traders combined together based on a theme or strategy.

The web platform has an easy-to-use and intuitive interface that is beginner-friendly while offering advanced features for experienced traders. Among those features is one-click trading, which lets traders open a new position while using pre-determined parameters with just a click.

Additionally, it offers a stop loss feature that lets you keep a position open as long as the market price moves in the right direction. Another feature is the eToro Research Tab, powered by TipRanks, which helps you enhance your knowledge to make better-informed investment decisions.

Buy Porsche AG Stock – eToro Dashboard Overview

Although the platform is attractive for beginners, it is not the ideal platform for day traders or experienced investors as spreads are high for some products. Additionally, withdrawing money is somewhat expensive compared to other brokers ($5 per withdrawal request). For a full assessment, read our comprehensive eToro review.

#3 Freedom24

How To Invest In Porsche AG IPO: Buy Porsche Stock 3
Visit Freedom24
Capital is at risk.

Freedom24 at a glance

Offers Porsche AG stock
Products availableStocks, ETFs, Bonds, Futures and Options, new shares at initial (IPO) price
Minimum Deposit€0 (€2,000 for IPOs)
RegulatorsCySEC, BaFin, SEC
FeesFrom €0.008 per share

Freedom Finance is the parent company of Freedom24, Europe’s best trading platform for new stocks at IPO. The online broker is well-known for allowing retail investors to purchase stocks at their IPO prices, which was previously only available to institutional investors. 

Freedom24 was established in 2008, has 400,000+ worldwide clients, and has already given access to over 250 stocks at IPO price. The Freedom24 trading platform has an extensive range of financial instruments. You can also invest in stocks, ETFs, bonds, futures, and options, and it gives you access to several international markets such as NASDAQ, NYSE, CME, HKEX, LSE, and Deutsche Börse.

The company offers a web-based trading platform and a mobile app. Both platforms are easy to use, well designed, and intuitive, even for first-time users. What we liked about the trading platform is the “InvestIdeas” tab, which allows you to look at research conducted by Freedom Finance analysts, talking about particular stocks and giving ideas about attractive investment opportunities. The platform also offers a “D account,” high-yield savings account that lets you earn 3% per annum in USD.

Freedom24 offers four service plans with different costs: Smart, Fix, or Super in EUR and an all-inclusive plan in USD. Freedom24 has a free promo plan for new users where you can trade for free for the first 30 days.

Buy Porsche AG stock – Freedom24 Demo Account

Although you can purchase new stocks at IPO prices, the minimum required amount to qualify for IPO subscriptions is high ($2,000). Read our Freedom24 review.

Is Investing in IPOs Profitable?

While this often boils down to knowledge and investing experience, you can earn a profit by investing in IPOsBetween the two brokers mentioned above, Freedom24 is the only one that provides statistical figures for its past IPO offering. So, we will present it here as a result.

Since 2012, Freedom24 has provided 265 companies at IPO price for its clients, and the average return by the end of the lock-up period was 53%.

Freedom24

Freedom24 | Past IPO Outcomes

They’ll send you more information on the performance of those companies and other statistics if you enter your email.

Is Porsche AG IPO a Good Investment?

Investing in an IPO is usually riskier than investing in a stock that is already listed on the exchange due to higher volatility during the first trading days. However, you can have a quick look at the fundamentals of the company in order to learn more about its operating performance.

Below are a few factors that should be considered:

  1. Gross revenue (“top line”)
  2. The revenue drivers, such as active user or member growth
  3. Profit margins, often EBITDA as a percentage of top line; EBITDA means “earnings before interest, tax, depreciation, and amortization”
  4. Its private valuation growth, earned whenever a private capital raising with major investors, hedge funds, or banks occurs
  5. Cumulative funding and current (pre-IPO) investors
  6. The management team
  7. Its competitors

If an “IPO Filing” has already occurred, a great place to start is taking the time to read through any stock’s original prospectus available on SEC. This helps cut through the noise and hype typically surrounding an IPO.

Finding such information prior to an IPO filing remains difficult, yet reputable trade journals such as Forbes, WSJ, Crunchbase, or TechCrunch provide meaningful estimates.

With respect to Porsche AG’s IPO, the below estimates are currently available, noting it is in EUR:

  1. Revenue (2021): €33.1 billion, a 15% increase over 2020 (€28.7 billion)
  2. Operating profit (2021): €5.3 billion, a 27% increase over 2020 (€4.2 billion)
  3. Vehicles sold (2021): 301,915 compared to 272,162 vehicles in 2020
  4. Investors include: Volkswagen AG and Porsche SE, please see above
  5. Management: CEO Oliver Blume, will also become CEO at Volkswagen AG effective September 2022.
  6. A close parallel is Snowflake, which already went public in September 2020
  7. Potential valuation: Between €80 billion and €90 billion as per estimation

We only mentioned a few of the metrics that are currently available; for more details about the company, you can visit the Porsche Newsroom website, where they regularly publish their financials, deliveries, new model release, and other news.

The Bottom Line

IPOs are always exciting to follow, and Porsche AG’s IPO will definitely grab the attention of many investors across the world in the next few months. The sports car manufacturer proved that it is able to operate in a highly challenging business environment and keep growing.

While focusing on high-quality products, Porsche has set sustainability-related ambitions that will redefine the concept of modern luxury and are expected to boost its growth over the upcoming years.

Porsche might provide the +50% return you’re looking for, but we suggest you conduct your own research or sit down with a professional advisor.

FAQs about Porsche AG IPO

What is an IPO, and how does it work?

An “IPO” is an initial public offering. As it sounds, it marks a stock’s first trading day on a relevant and public exchange. Most IPOs are crowded or “oversubscribed,” making it almost impossible to receive the actual initial price unless you opt for a pre-order through a platform like Freedom24 and TradeStation.

Is Porsche AG a public company?

Yes! It became one on the 29th of September 2022, and it is trading under the ticker P911.DE (not to be confused with ticker PAH3.DE  for Porsche Automobil Holding SE).

What is the difference between Porsche AG and Porsche SE?

Porsche SE is just a business holding company with a stake in Volkswagen AG and is not an automobile manufacturer. Porsche AG, wholly owned by Volkswagen AG, is the actual manufacturer of the Porsche automobile brand.

When was the Porsche AG’s IPO?

Porsche’s newly issued (preferred) shares started trading on the Frankfurt Stock Exchange on the 29th September 2022. The offering period commenced on 20th September 2022 and ended on 28 September 2022.

What other IPOs are coming soon?

Some upcoming IPOs include the Reddit IPO, Discord IPO, Netskope IPO, Stripe IPO, Databricks IPO, and Instacart IPO. You can take a look at Freedom24’s upcoming IPOs and make a list of your next targets!

Toni Nasr, CFA, FRM
Fintech Analyst

Toni is a Fintech Analyst with over 8 years of experience in the financial industry where he worked as a financial control analyst at a regional bank and later conducted independent investment research analysis.

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