© Reuters Photo File: Participants An audience looks on at the 2022 Porsche 718 Cayman GT4 RS on November 17, 2021 in Los Angeles, California, USA.
By Jan Schwartz and Emma-Victoria Farr
HAMBURG/FRANKFURT (Reuters) – Volkswagen announced plans to float sports car brand Porsche on Monday, triggering what could be one of the world’s biggest listings as markets grapple with record inflation and a power struggle between Russia and Europe.
The automaker has published what it calls a floatation target that will be completed by the end of the year in late September or early October.
The move to list the Frankfurt shares was announced after VW’s supervisory board issued a resolution late on Monday.
Investors expect a valuation of 60 to 85 billion euros. At the high end of the speculation, the IPO could be the largest in German history and the largest in Europe since 1999, according to Refinitiv data.
Volkswagen (ETR: ) says the IPO will be a critical step in the company’s transformation as it plans to become a leading provider of software-based mobility.
Qatar will be a cornerstone in the newly listed company, aiming to hold a 4.99 percent stake, Volkswagen said.
The float includes an offer to retail investors in Europe, including France, Spain and Italy.
In February, Volkswagen approved the sale of a 25% plus one stake in Porsche AG to Porsche SE as part of a framework agreement between the two parties.
That would block a minority of the Porsche and Peach families that control Porsche – strengthening their push for more control under new CEO Oliver Blume.