Volkswagen announces decision to go ahead with Porsche IPO

Volkswagen is set to brave the waters and go ahead with an initial public offering of its iconic Porsche brand of sportscars.

The German automaker has filed its intention to float the shares in late September or early October, although the exact timing would be "subject to further capital market developments".

On Monday, Reuters reported that the manufacturer might extend the four-week period book-building process or even pull it if investors showed a weal appetite for the flotation.

"It's paving the way, but this would not guarantee that the stock market bell will ring in the end," a source reportedly told Reuters.

Porsche shares were expected to fetch a valuation of between €60-85bn.

The high end of that range would turn the float into Europe's largest since 1999, according to Refinitiv data.

Nevertheless, some market observers criticised the timing of the company's stock market debut, arguing that it was meant mainly to boost the control of the Porsche and Piech families over the company.

As of 1419 BST, shares of Volkswagen were climbing 4.38% to 190.45p.