Porsche gears up for market debut

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A flotation would test the investor appeal of Europe’s largest automaking 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.

That would trigger an announcement of the initial public offering or “intention to float,” as soon as the first week of September, the people said, marking the beginning of a roughly four-week period for buyers to get ready to invest. 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 and Porsche all declined to comment.Some investors are reluctant because just 12.5% of Porsche’s stock will be sold on the open market.

Even before the turmoil surrounding energy costs and war, Germany’s carmakers faced the challenge of adapting to the phase-out of diesel and petrol motors in favour of electric vehicles. Management’s decision will also be influenced by the price the stock can be sold for and whether Porsche would have to accept a steep discount if it is determined to press ahead.

 

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