Sports car manufacturer Porsche plans to go public this fall. According to a press release, preference shares will also be offered to private investors.
Scammers also benefit from this. The Financial Supervisory Authority Bafin 14 has published a warning in the past few months: service providers without a license are offering private investors purported Porsche shares before marketing.
You can actually “subscribe” to Porsche shares from your bank before starting actual trading on the stock market, without getting involved with scammers. If you have your deposit with a consortium bank, you have a better chance of getting Porsche papers.
On September 29, it’s time: Porsche rolled out to the public. Anyone who searches for a sports car manufacturer’s stock price on the Internet will immediately notice that there is indeed a Porsche stock. Porsche SE, which has been listed since 1997, is an investment company. It is the largest shareholder in the Volkswagen Group.
However, the planned IPO (Initial Public Offering), i.e. the first public offering of securities, revolves around Porsche AG, which is responsible for manufacturing the sports car. Porsche AG franchises are offered in a pass between 76.50 and 82.50 euros per item. The plan aims to issue approximately 114 million shares. This includes nearly 15 million sheets of potential over-allocation, as announced by parent company VW. If everything goes as planned and the actual asking price levels fall in the mentioned range, the total revenue is expected in the range of 8.71 to 9.39 billion euros. So it has to be the largest IPO in Europe in recent years.
But the hype also attracts scammers who smell of fast money. The Federal Financial Supervisory Authority (Baffin) has warned a total of 14 times since the beginning of the year about scammers who “offer” Porsche shares. “Pre-market offers (…) do not come from Volkswagen AG nor any of its subsidiaries,” says a report. Companies offering stakes to consumers in other companies for sale require Bafin’s permission. This also applies to pre-IPO shares.
“The process is usually as follows: Consumers are usually contacted without a phone order from companies offering shares from well-known issuers that have announced an initial public offering of themselves or a subsidiary,” Baffin said in response to our request. “If consumers accept the offer, they pay the purchase price for the shares offered, but they never receive the stock.”
Scam providers usually run a professional looking website including a fingerprint. As a rule, they also indicate the presence of a registered office in Germany, but not at this address. “Sometimes the entire identity of an existing company is misused,” a Baffin spokesperson said. Service providers use free assessment services and online journalism portals to “allow themselves to present themselves in a very positive light.”
“It is not easy to detect these counterfeit products,” the spokesman added. Because there are so many cases of identity abuse, consumers should be skeptical about unsolicited communication, according to the IRS — even if it’s an officially certified company. “Even unsolicited contact is an indication that something is wrong, and institutes aren’t allowed and don’t,” a Baffin spokesperson said. In this case, it is advisable to compare the information on the company’s website with that of the contact person.
“Such offers should always be treated with caution,” agrees financial expert Sandra Kluge of the Consumer Consulting Center in Hamburg. If someone is offering shares before the stock exchange, one should be skeptical and inquire about the providers of BaFin.
“You also have to be aware of the risks,” Kluge continues. Because it’s not necessarily a good idea to buy stocks before the IPO. “If the IPO fails, there’s probably no one going to buy the stock,” Kluge says.
Private investors who actually want to buy Porsche shares before the start of actual trading on the stock exchange can request share certificates from their bank during the so-called subscription period.
In principle, this can be done with any bank, but consortium banks have priority. This means that if you have an account with a bank that organizes and accompanies the IPO, you are more likely to get the shares you want. German federal banks are: Baden-Württembergische Bank, Comdirect, Commerzbank, Consorsbank, DAB BNP Paribas, Deutsche Bank, Deutsche Sparkassen / S-Finanzgruppe, Landesbank Baden-Württemberg, Maxblue, S Broker and UniCredit Bank.
“Applications from private individuals through non-insurers are subject to the discretionary allocation process, and therefore may receive smaller allowances, if any, on a proportional basis,” Porsche said in a presentation.
It is not yet clear when the subscription period will start. It is estimated that it will be in about two weeks. The prospectus must first be published and approved. From then on, private investors can submit an application.
This means that you must specify the number of shares you want to subscribe to and the maximum share price you are willing to pay. All orders are recorded in the digital order book. After the subscription period expires, the share issue price is calculated from the bids.
The shares available in the Offering will then be allotted to all those who have subscribed at this issue price or at a higher price. So the actual number of shares you get depends on the demand. “It is therefore possible that interested parties will not receive the full number of shares they have requested,” says Porsche’s bid. Regular trading on the stock exchange usually begins the day after the allotment.
Disclaimer: Stocks, cryptocurrencies, and investments are always associated with risks. A complete loss of the invested capital cannot be excluded. The published articles, statements and forecasts are not a solicitation to buy or sell securities or rights. Nor does it replace professional advice.
Materials from the Department of Political Affairs
This text first appeared on September 15. It has been updated and reissued.