Volkswagen targets $75bn for Porsche IPO valuation

Volkswagen set a valuation target of EUR70bn ($70.1bn) to EUR75bn for the initial public offering of its iconic sports-car brand Porsche, people familiar with the matter said.

The German carmaker is selling a 12.5 per cent stake of Porsche’s total share capital, a reference to the brand’s most famous model. The price range for the share sale is set at EUR76.50 to EUR82.50, the people said, declining to be named discussing private information.

The valuation is below an earlier top-end target of as much as EUR85bn, but would still make the listing one of Europe’s biggest at a time of deep uncertainty in global markets. About four anchor investors have committed to invest, including the Norwegian sovereign wealth fund.

Qatar Investment Authority has made a preliminary commitment to buy a 4.99 per cent stake, VW said earlier. A spokesman for VW declined to comment.

The share sale will see the billionaire Porsche-Piech family regain influence lost control of their former family-run business more than a decade ago after a protracted takeover battle with VW. The company is pushing on with its IPO after markets soured amid the energy crisis, soaring inflation and higher interest rates.

Reuters earlier reported the valuation of the IPO.

The listing is set to reopen European markets, which have been largely shut for most of the year with investors shying away from equity offerings after markets soured because of the energy crisis in Europe, rising interest rates and record inflation.

At the expected price range, the share sale will see VW receive proceeds of as much as EUR9.4bn with a greenshoe option of as many as 10 per cent to 15 per cent, they said. The bookbuild for the offering is set to start Tuesday, the people said.