Preliminary measures to list Porsche on the stock market are likely in the coming days, adding that executives from parent Volkswagen and family members were convening to promote the concept to hesitant investors.
A float would put Europe’s largest automaker’s investor appeal to the test, as the continent grapples with the economic consequences of the Ukraine crisis, the possibility of gas rationing and recession, and the most severe inflation in decades, driven by energy costs.
When stock market instability has restricted the number of listings, a long-awaited public offering would illustrate the degree of interest in a holding that provides a stake in a prestigious brand but is too little to influence boardroom decisions.
According to the sources, the boards of Volkswagen and its largest shareholder Porsche SE are anticipated to submit a recommendation in the coming days, which would then be approved by the businesses’ supervisory boards.
This would result in an announcement of the initial public offering (IPO) or ‘intention to float’ as early as the first week of September, according to the sources, kicking off a roughly four-week period for purchasers to prepare to invest.
Three of the persons claimed that no final decisions have been made because the uncertainties surrounding the Ukraine war and a rising energy crisis may drive management to opt to wait.
Volkswagen and Porsche SE announced preliminary talks on a listing on February 22 and provided more details on February 24, the day Moscow attacked Ukraine, the largest attack on a European state since World War II.
Even if management granted permission to canvass investors, the group could suspend the listing if efforts to secure demand fail, according to one of the persons.
The individuals refused to be identified since they were not authorised to speak to the press.
Post Your Comments