Porsche CEO Oliver Blume wants to return to the Dax
Stuttgart. Following the sports and off-road vehicle manufacturer's delisting from the DAX, Porsche CEO Oliver Blume is aiming for a speedy return to the leading index. Blume told the "Frankfurter Allgemeine Zeitung": "The DAX will be deprived of one of Germany's most valuable companies." In terms of market capitalization and the appeal of the Porsche brand, the company remains one of Germany's largest listed companies.
The Stuttgart-based automaker will be listed in the MDax mid-cap index in the future, as Deutsche Börse announced Wednesday evening. This means it will no longer be among the top tier of Germany's 40 most valuable listed companies. The changes will take effect on September 22nd.
Blume pointed out that Porsche is undergoing a transformation. However, he was confident that investors would continue to recognize the value of the stock. With the recent restructuring programs, Porsche shares would also rise again in the future: "With Porsche's new direction, we have a clear ambition to return to the DAX as soon as possible."
Blume further stated that the company's soon-to-be listed in the MDax was due in no small part to technical factors: "According to its rules, Deutsche Börse only considers freely tradable free float when composing the DAX – and at just over 12 percent, this is comparatively low for Porsche AG." In the DAX, Porsche is therefore compared to companies that may have a lower market capitalization but a significantly higher free float. Therefore, it just missed the mark in this round.
Porsche AG went public at the end of September 2022, celebrating one of the largest IPOs in German economic history. Just a few months later, the then highly profitable company was listed on the DAX. The shares launched at an issue price of €82.50 and rose to almost €120 in the following months. Most recently, the share price was only around €45.
Porsche's decline is symbolic of the crisis in the German auto industry, which is struggling with declining profits. This is weighing on the companies' share prices.
RND/dpa
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