POAHY

By Britta Becks

Porsche AG's executive board is convinced that the company's initial public offering set for the fall will be a success despite the challenging market environment and the tense geopolitical situation, said Chief Executive Oliver Blume, who is also head of Volkswagen AG.

The sports-car maker has always proven to be extremely robust and resilient especially in times of crisis, Mr. Blume said during a video conference with journalists on Tuesday. He referred to challenges such as the coronavirus pandemic, the semiconductor shortage and the war in Ukraine. Porsche has always achieved high-profit margins, he said, and this should have persuasive power for potential investors. According to Chief Financial Officer Lutz Meschke, the Qatar Investment Authority has already expressed interest and could subscribe just under 5% of Porsche shares.

There is a lot of capital on the market, Mr. Blume said, adding that Porsche's IPO could even be an icebreaker for the IPO market.

Looking at concerns that a double mandate could generate conflict of interest, Mr. Blume said that he could potentially remain neutral and that the Porsche board would then always be in a position to make independent decisions. Also, by maintaining a dual function he would be able to ensure that synergies would continue to flow in both directions--from Volkswagen to Porsche and from Porsche to Volkswagen, Mr. Blume said.

Write to Britta Becks at britta.becks@wsj.com

(END) Dow Jones Newswires

September 06, 2022 06:13 ET (10:13 GMT)

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