Porsche IPO Valuation Target Unveiled, Lifting Shares in VW’s Anchor Stakeholder

By Scott Kanowsky — Shares in Porsche Automobil Holding SE (ETR:) climbed in early European trading on Monday after Volkswagen (ETR:) targeted a valuation of sportscar brand Porsche AG of as much as €75B in its planned initial public offering.

VW, the German carmaking giant in which Porsche SE – the investment arm of the powerful Porsche-Piëch families – is an anchor stakeholder, said preferred shares in Porsche AG will be priced at €76.50 – €82.50, which would give it a value of between €70B to €75B.

The valuation is within the middle of the €60B – €90B prediction put forward by analysts ahead of the partial flotation of Porsche AG set for September 29.

The IPO would rake in €8.7B – €9.4B for VW, the business said in a statement. Porsche AG’s parent firm said it will use these funds to pay out a special one-time dividend, while any remaining cash will be used in its long-term shift to battery-powered vehicles.

Several backers have already put forward their intentions to snap up about €3.8B in shares in Porsche AG, including the sovereign wealth funds of Qatar and Abu Dhabi, as well as Norges Bank and investment company T Rowe Price (NASDAQ:).

Meanwhile, the Porsche-Piëch families will purchase 25% plus one additional ordinary share in Porsche AG at a 7.5% premium to the price of holdings being made available to the general public. The stake would also come with voting rights.

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