Porsche Is Said to Court Gulf Sovereign Funds for Landmark IPO - Bloomberg

Porsche Is Said to Court Gulf Sovereign Funds for Landmark IPO - Bloomberg

Porsche is trying to secure anchor investments from some of the largest Middle Eastern sovereign wealth funds, as the iconic sports-car maker looks to pull off one of Europe’s biggest listings amid market headwinds and valuation concerns, people familiar with the matter said.

Abu Dhabi’s Mubadala Investment Co. and ADQ are among those considering committing funds to the Volkswagen AG unit’s listing, according to the people, who asked not to be identified discussing confidential information. State-owned entities in other Gulf markets, including Saudi Arabia, are also exploring investments, they said.

Advisers on the IPO have also approached major Canadian and Malaysian funds, as well as the Norwegian sovereign wealth fund, one of the people said. Volkswagen is considering offering more than 5% of Porsche’s preferred stock to anchor investors, the people said.

Existing Volkswagen shareholder Qatar Investment Authority has already decided to become a strategic investor in Porsche.

Commitments from more funds would be a vote of confidence as the German carmarker looks to push a premium valuation. The German state of Lower Saxony, another Volkswagen shareholder, and the controlling Porsche-Piech family are seeking a valuation of no less than 60 billion euros ($62 billion), the people said.