After the decision of the stock exchange: Porsche boss Blume strives to return to the DAX

Porsche boss Oliver Blume strives for a soon return to the leading index after the descent of the sports car manufacturer from the DAX. Blume told the “Frankfurter Allgemeine Zeitung” (FAZ): “The DAX becomes poorer for one of the most valuable German companies.” With a view to the overall market capitalization and the radiance of the Porsche brand, the large listed companies in Germany are still counted.

In the future, the Stuttgart car manufacturer will be noted in the MDAX medium value index, as the German Börse announced on Wednesday evening. It is no longer part of the first division of the 40 most valuable stock market companies in Germany. The changes will come into force on September 22nd.

Blume pointed out that the car manufacturer was in transition. However, he was certain that investors would further recognize the value of the share. With the latest conversion programs, higher Porsche courses will also be seen in the future. “With the new direction of Porsche, we have the clear ambition to return to the DAX soon.”

Blume continued to say that you would soon be listed in the MDAX, not least due to technical factors: “The German stock exchange takes into account the freely tradable free float in the composition of the DAX – and this is comparatively low at Porsche AG.” In the Dax Mess Man Porsche, with companies that would have a lower market value, but a significantly higher free float of the shares. Therefore, it was not enough in this round.

Billion-dollar exchange, then drop in the price

Porsche AG went to the stock exchange at the end of September 2022 and celebrated one of the largest IPOs in German economic history. Just a few months later, the still highly profitable company rose into the DAX at the time. The shares started with an issue price of 82.50 euros during the IPO and increased to almost 120 euros in the months after. Finally, the share price was only around 45 euros.

The descent of Porsche is symbolical of the crisis of the German auto industry, which fights with falling profits. This burdens the company’s share prices.

Criticism of double role from Blume

In the “FAZ”, the manager again defended his double role as head of the Volkswagen Group and the daughter Porsche, who is criticized by shareholders as well as the VW overall works council: “The double role in the Volkswagen Group and at Porsche AG brings many advantages. It was deliberately so set from the start.” He was entitled to “lead to one hundred percent” of both companies. “And at the same time it is no secret that this double role is not designed in the long run.” Blume had already indicated his farewell to the Porsche tip. However, he did not want to name a specific period.