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RIYADH: German automobile manufacturer Porsche is trying to secure anchor investments from Gulf sovereign wealth funds, Bloomberg reported citing people familiar with the matter.
The car maker, which is owned by Volkswagen, looks to pull off one of Europe’s biggest listings amid market headwinds and valuation concerns, the people said.
Sovereign funds considering committing to the Porsche listing include Abu Dhabi’s Mubadala Investment Co. and ADQ, the people said, asking to remain anonymous for information confidentiality.
Saudi Arabian organizations are also exploring investments, they said.
Major Canadian and Malaysian funds have been approached too, by the advisers on the initial public offering, as well as the Norwegian sovereign wealth fund, one of the people said.
Existing Volkswagen shareholder Qatar Investment Authority has already decided to become a strategic investor in Porsche, according to Bloomberg.
In March, Volkswagen said the conflict in Ukraine could affect the timing of the proposed IPO of Porsche, which was originally earmarked for the fourth quarter of 2022.
More information on the progress of the IPO is expected to be released in late summer, a spokesperson for Porsche and Volkswagen said.
Some investors are concerned about Porsche being more independent from its parent amid the listing, they said.
Investors scrutinized more last month, after putting Porsche CEO Oliver Blume in charge of parent Volkswagen.
Deliberations are ongoing and there’s no certainty the funds will proceed with firm commitments, according to the people.
No comments were provided by Mubadala, ADQ, Norges Bank Investment Management or QIA on this.
Volkswagen has picked Goldman Sachs Group, Bank of America Corp., JPMorgan Chase & Co. and Citigroup as joint global coordinators for the Porsche IPO, Bloomberg said.