Strong demand for Porsche IPO - report

Volkswagen announced plans earlier this month to float 12.5% of the luxury car marque on the Frankfurt Stock Exchange. On Sunday, it said shares would be priced at between €76.50 and €82.50, raising between €8.7bn and €9.4bn for the parent company and giving Porsche a value of between €70bn and €75bn.

The price range was well received, and on Tuesday an unnamed bookrunner involved in the deal told Reuters demand for the listing now exceeded the full deal size, with the books covered multiple times.

Another source added that while it was too early to judge retail demand, there had been strong interest in the German debut globally, including in the US, Europe and Asia.

Around €3.8bn worth of shares have already been earmarked for a number of cornerstone backers, however, including the Qatar Investment Authority, a major shareholder in Volkswagen.

Proceeds from the partial initial public offering are expected to help fund VW’s electrification drive.

Porsche is expected to make its market debut on 29 September.