International Business: Porsche eyes investments from Gulf sovereign funds – Gulf Digital News

International Business: Porsche eyes investments from Gulf sovereign funds – Gulf Digital News

RIYADH: German car manufacturer Porsche is trying to secure anchor investments from Gulf sovereign wealth funds, reports citing people familiar with the matter said.

The carmaker, 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 Company and ADQ, the people said.

Saudi Arabian organisations 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.

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 scrutinised more last month, after putting Porsche chief executive Oliver Blume in charge of parent Volkswagen.

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