Valuation target announced for Porsche’s IPO, shares of VW’s anchor shareholder lifted by Investing.com

© Reuters Valuation target announced for Porsche’s IPO (POAHY), shares of VW’s anchor shareholder lifted

Shares of Porsche (POAHY) rose in early European trade on Monday after Volkswagen (VWAGY) aimed to value sports car brand Porsche AG at up to €75 billion ($75 billion) in its planned IPO.

VW, the German auto giant in which Porsche SE — the investment arm of the powerful Porsche Piëch families — is an anchor shareholder, said Porsche AG’s preferred shares will cost between €76.50 and €82.50, giving it value of EUR 76.50 would result in between EUR 70 billion and EUR 75 billion.

The valuation is in the middle of what analysts expected ahead of the September 29 partial listing of $60 billion.

The IPO would bring VW 8.7 to 9.4 billion euros, the company said in a statement. Porsche AG’s parent company said it will use those funds to pay a one-off special dividend, while any remaining cash will be used towards the long-term shift to battery-powered vehicles.

Several backers have already announced their intention to acquire shares in Porsche AG worth around 3.8 billion euros, including sovereign wealth funds of Qatar and Abu Dhabi, as well as Norges Bank and investment company T Rowe Price (TROW).

In the meantime, the Porsche-Piëch families will acquire 25% plus one additional common share of Porsche AG at a premium of 7.5% over the price of the shares made available to the public. Participation would also come with voting rights.

By Scott Kanowsky