Friday, 30 September, 2022

Volkswagen values Porsche at up to $75bn in share sale

German car making giant Volkswagen (VW) has said it is aiming for a valuation of up to €75bn ($75bn; £65.8bn) for Porsche when the luxury brand is floated on the stock market.

Trading in the shares is due to start in Frankfurt on 29 September.

A prospectus will be published on Monday, after which investors can subscribe to Porsche shares.

The share sale is set to be Germany's second-largest ever initial public offering (IPO).

VW said in a statement to investors that it will price preferred shares in the flotation of Porsche at €76.50 to €82.50 per share, which would give the sportscar maker a stock market valuation of €70bn to €75bn.

At the upper end of the range it would be Europe's third-largest IPO on record.

However, the figures announced on Sunday fell short of an earlier valuation target - as much as €85bn - amid investor concerns over rising interest rates and a potential global recession.

VW said it will raise as much as €9.4bn from the share sale, which will help pay for its shift to electric vehicles and spending on software development.