On Monday, Porsche Automobil Holding SE shares rose in early European trading after Volkswagen AG (ETR: VOWG) targeted a sportscar brand Porsche AG valuation of as much as €75B in its planned initial public offering (IPO).
Volkswagen, the German motor vehicle manufacturer, said preferred shares in Porsche AG would be priced at €76.50 – €82.50, giving it a value of between €70B to €75B. For Volkswagen, the IPO would rake in €8.7B – €9.4B.
VW, Porsche AG’s parent firm, said it would use these funds to pay a special one-time dividend. It also cleared that any remaining cash will be used in its long-term shift to battery-powered vehicles.

Several investors have already cleared 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 investment company T Rowe Price (NASDAQ: TROW) AND Norges Bank.

Notably, the Porsche-Piëch families would purchase 25 per cent plus one additional ordinary share in Porsche AG at a 7.5 per cent premium to the price of holdings being made available to the general public. The stake would also comprise voting rights.

Founded in 1931, Porsche is a German automobile manufacturer specializing in high-performance SUVs, sports cars, and sedans. As of 2021, its production output is nearly 301,915 vehicles.