Abu Dhabi wealth funds may invest in planned Porshe IPO

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• Over 5% of Porsche’s preferred stock to be offered to anchor investors
• Porsche, Piech families expect to return the group to calmer waters

Abu Dhabi’s sovereign wealth funds – Mubadala Investment Co. and ADQ – are likely to become anchor investors for the possible initial public offering (IPO) of Volkswagen-owned luxury carmaker Porsche, Bloomberg reported, citing informed sources.

State-owned entities in other Gulf markets, including Saudi Arabia, are also being considered as potential investors in one of Europe’s biggest listings, the sources said.

Advisers on the IPO have also approached major Canadian, Malaysian and Norwegian sovereign wealth funds.

The report said that existing Volkswagen shareholder Qatar Investment Authority has already decided to become an investor in Porsche.

Volkswagen is considering offering more than 5 percent of Porsche’s preferred stock to anchor investors to help finance its biggest push into electric cars and boost valuation.

Separately, Volkswagen’s controlling shareholder families want greater say over strategic matters ahead of the planned listing of Porsche, Reuters reported, citing people familiar with the matter.

The Porsche and Piech families control the holding firm Porsche SE, which owns most of Volkswagen’s voting rights, are expecting to return the group to calmer waters after a turbulent period under outgoing CEO Herbert Diess.

The IPO is critical to the families as they would become direct shareholders of Porsche AG again after Volkswagen took over the carmaker in 2009.