Under shadow of war, Porsche gears up for market debut

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Volkswagen considering listing Porsche on stock exchange, but it's weighing it against economic and political climates.

A flotation would test the investor appeal of Europe's largest auto manufacturer group as the continent grapples with the economic impact of the war in Ukraine, the threat of gas rationing and recession, and the most severe inflation in decades, driven by energy costs.volatility has reduced the number of listings, a long-awaited public sale would also demonstrate the extent of appetite for a stake that gives a share in a prestigious brand but is too small to influence boardroom decisions.

Still no final decisions have been taken, three of the people said, as uncertainty linked to the Ukraine war and an escalating energy crisis could lead management to decide to wait. Even if management gives approval for canvassing investors, the group could halt the listing should attempts to secure demand fail, one of the people said.Volkswagen, Porsche SE and Porsche AG all declined to comment.Some investors are reluctant because just 12.5% of Porsche AG's stock will be sold on the open market.

 

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