Volkswagen is targeting a valuation of up to $75 billion for luxury sports car maker Porsche, the company said on Sunday.
The German carmaker said it will price Porsche AG preferred shares in the flotation at 76.50 euros to 82.50 euros per share, giving an estimated valuation of 70 billion to 75 billion euros.
The initial public offering (IPO) by the German car maker is expected to be the second largest in the country’s history and one of the largest European public listings, in times when few companies have listed as the region faces an energy crisis, high inflation and rate hikes.
“We are now in the home stretch with the IPO plans for Porsche and welcome the commitment of our cornerstone investors,” Volkswagen Chief Financial Officer and Chief Operating Officer Arno Antlitz said.
Porsche’s shares are set to begin trading Sept. 29 on the Frankfurt Stock Exchange.
The sovereign wealth funds of Qatar, Abu Dhabi and Norway as well as mutual fund company T. Rowe Price will subscribe up to 3.68 billion euros worth of preferred shares.
