BERLIN: Volkswagen AG is looking to raise as much as  9.4bil from the initial public offering (IPO) of its iconic sports-car maker Porsche AG in what could be Europe’s largest listing in more than a decade.

The German carmaker said it was seeking a valuation of 70bil to  75bil for the listing, below an earlier top-end goal of as much as 85bil , with the deal going ahead at a time of deep market upheaval.

European markets have been largely shut for most of the year, with investors shying away from IPOs because of the region’s energy crisis, rising interest rates and record inflation.

Amid the stock market slump, the plan to list is getting a boost from firm commitments of key cornerstone investors.

Qatar Investment Authority, Norway’s sovereign wealth fund, T Rowe Price and ADQ are set to subscribe to preferred shares of as much as 3.7bil , the manufacturer said.

Porsche isn’t alone in scaling back valuation targets, with Intel Corp lowering expectations for its Mobileye IPO.

“We are now in the home stretch with the IPO plans for Porsche and welcome the commitment of our cornerstone investors,” VW’s chief financial officer Arno Antlitz said.

The offer period will start today with a planned trading start for on Sept 29.

Aside from offering investors a slice of one of the most recognisable names in car making, the IPO will hand back significant decision-making power to the Porsche-Piech family.

The family lost control of the sports-car maker more than a decade ago after a protracted takeover battle with VW.

To account for the interests of the billionaire family, who hold 53% of VW’s voting shares via the separately listed Porsche Automobil Holding SE, the Porsche IPO is complex and has triggered governance concerns that mirror those about VW’s convoluted structure.

Investors will be able to subscribe to 25% of Porsche preferred shares, which carry no voting rights.

The family will buy 25% plus one of Porsche’s common shares with voting rights, meaning they will receive a minority blocking stake and sway on future key decisions.

The family has agreed to pay a 7.5% premium on top of the price range for the preferred shares.

They plan to fund the acquisition with a mix of debt capital of as much as  7.9bil and a special dividend paid out by VW to shareholders.

Proceeds from the deal will help VW with financing its electric-vehicle transition and investments in software, the carmaker said.

While interest for the IPO has been high, some investors have said they are not happy with the appointment of Oliver Blume, Porsche’s chief executive, to the helm of VW.

The plan for him to stay on in a dual role has raised questions about Porsche’s future independence.

 - Bloomberg