Porsche faces uphill drive to share listing

STORY: Porsche is driving towards a share listing.

But Reuters sources say it may have to accept a big discount.

Initial expectations had been high.

Some valued the luxury car maker at almost $82 billion.

But now people involved say a big markdown may be needed to ensure a successful debut for the shares.

That’s partly just down to timing, with the listing coming amid war, recession worries and energy shortages.

One said Porsche might now have to settle for around $60 billion as a result.

This week the Volkswagen-owned brand outlined its business plans to investors.

Executives said the firm was “financially resilient” and well-prepared for whatever happens next.

But some investors have their doubts.

One top-20 VW shareholder told Reuters it wasn’t keen on the IPO plan.

That’s because only a small amount of stock will be sold, giving shareholders little influence.

Porsche is pressing ahead though.

It’s thought the IPO could be set for around the end of the third quarter.

A lot is riding on it for the firm.

It wants 80% of its sales to be electric cars by 2030, and that requires billions of euros of investment in new vehicles.

A discounted share sale wasn’t what Porsche had in mind at all.

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