Porsche: Listing going ahead unless ‘severe geopolitical problems’ arise
Porsche’s listing will go ahead unless “severe geopolitical problems” arise, according to chief financial officer Lutz Meschke.
“You never know what will happen regarding geopolitical issues, but if a potential IPO would be stopped now, we are talking about severe problems,” Meschke said on Tuesday during a media call.
“By then, a potential IPO would not be a real issue.”
Following months of deliberation, Volkswagen – Porsche’s parent company – set off the listing late last night after board members gave it the green light for late September or early October.
The board, however, warned the move remained subject to market developments.
According to Porsche’s boss Oliver Blume – who became chief executive also of the wider Volkswagen group on 1 September – the IPO could be an “icebreaker” and help revive the capital markets hit by a slowing growth.
“There is a lot of capital in the market,” Blume said. “We think the Porsche IPO could be an icebreaker.”
The floating of Porsche, whose profit went up 22 per cent in the half of the year, is key to funding Volkswagen’s €52bn electrification strategy, which aims to turn the German car maker into the world’s largest producer of battery-electric vehicles by 2024.
Even though executives declined to comment on it, Porsche’s valuation is forecast to be between €60bn and €85bn – making it the largest quotation for a sports car in more than 20 years.