Gulf sovereign wealth funds consider investing in “German Porsche”

Germany’s Porsche is trying to secure significant investments from some of the Middle East’s largest sovereign wealth funds, people familiar with the matter said, as the popular sports car maker looks to close one of Europe’s biggest IPOs amid market headwinds and valuation concerns.

Among those considering setting aside money to list Volkswagen AG’s unit are Abu Dhabi’s Mubadala Investment Company and Abu Dhabi Holding Company ADQ, according to the people who asked not to be identified because the discussions are confidential. They said that state-owned entities in other Gulf markets, including Saudi Arabia, are also considering investments, according to a report published by Bloomberg.

The sources, who declined to be identified, indicated that there are government entities in the Gulf markets that are considering investing in the company. One person said the IPO advisors also reached out to major Canadian and Malaysian funds, as well as the Norwegian sovereign wealth fund, and Volkswagen is considering offering more than 5% of Porsche shares to major investors.

The sources said the German state of Lower Saxony, another shareholder in Volkswagen, and the controlling family Porsche-Bich are seeking a valuation of at least 60 billion euros ($62 billion).