HomeFinancial MarketsPorsche Approaches Gulf Sovereign Funds in Pursuit of Landmark IPO Listing

Porsche Approaches Gulf Sovereign Funds in Pursuit of Landmark IPO Listing

In an effort to pull off one of Europe’s biggest IPO listings, Porsche is approaching an array of Middle Eastern sovereign wealth funds for anchor investments. The Volkswagen AG unit has already engaged with the likes of Abu Dhabi’s Mubadala Investment Co. and ADQ, both of which are considering the auto manufacturer’s proposal.

Advisors on the IPO have also approached the Norwegian sovereign wealth fund in addition to funds in Canada and Malaysia, with Volkswagen considering providing anchor investors with 5% of Porsche’s preferred stock. With a premium valuation for Porsche in mind, the German state of Lower Saxony, a major investor, along with the controlling Porsche-Piech family is looking to secure a minimal valuation of 60 billion euros.

Volkswagen AG has already secured the agreement of its existing shareholder, Qatar Investment Authority, to become a strategic investor in Porsche.

In meetings with portfolio managers, Porsche delivered a pitch whereby it explained that the auto manufacturer aimed to achieve performance to rival Ferrari as well as luxury reminiscent of brands such as Louis Vuitton.

Discover Credit Card Spending Shrinks Amid Inflation

Discover Financial Services confirmed that spending on its credit cards has slowed down in recent months as inflation hits a 40-year high and signs...

Euro Zone Retail Sales Slip in October

Euro Zone retail sales were lower than expected in October, data released on Monday by the European Union's statistics office revealed. This indicates a...

European Central Banks Look to Bring Inflation Back to 2% Target

France and Germany's central bank officials have announced their aim to bring inflation back to its 2% target. In a joint interview, Bank of...