shares in Porsche Automobil Holding SE (ETR: PSHG_p) rose in the early hours of European trade on Monday, after Volkswagen AG (ETR: VOWG) has vowed to offer a value of the sportscar manufacturer Porsche AG of as much as EUR75B in its Initial Public Offering.
VW Volkswagen, the German automobile manufacturer in the which Porsche SE – the investment division from the powerful Porsche-Piech families is a stakeholder of anchor the company said that preferential shares in Porsche AG are expected to be valued at EUR76.50 between EUR82.50 that would give an estimated value of EUR70B between EUR70B and EUR75B.
Related: Volkswagen’s board of directors will meet on Monday to discuss Porsche’s listing.
The value is in that middle part of EUR60B and EUR90B estimate made by analysts prior to the public offering of Porsche AG set for September 29.
The IPO will bring in EUR8.7B and EUR9.4B for VW the business, it said in the statement. Porsche AG’s parent company stated that it plans to use the proceeds to pay a one-time dividend. The left over cash will be utilized in the long-term plan to switch to electric vehicles.
Many supporters have already announced their plans to purchase approximately EUR3.8B in shares in Porsche AG which includes those who own sovereign wealth funds from Qatar as well as Abu Dhabi, as well as Norges Bank and investment company T Rowe Price (NASDAQ: TROW).
In addition, the families of Porsche-Piech will buy 25% of another ordinary part in Porsche AG at a 7.5 percent premium over the value of the holdings accessible to the public at large. The stake will be accompanied by voting rights.
Related: Sources say that the Porsche and Piech families want to drive at Volkswagen.
