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

By Scott Kanowsky 

Investing.com -- Shares in Porsche Automobil Holding SE (ETR:PSHG_p) climbed in early European trading on Monday after Volkswagen AG (ETR:VOWG) 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:TROW).

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.