FRANKFURT—Germany’s Schaeffler family could delay plans to float its industrial and auto supplier Schaeffler AG unit due to market uncertainty caused by the unfolding scandal at Volkswagen AG.
Potential investors have been preoccupied with Volkswagen’s emissions-rigging revelations. Those have weighed on the market, particularly the auto sector, according to a person familiar with Schaeffler’s plans, meaning investors need more time to evaluate the terms of the IPO.
Earlier in the day, Schaeffler said it would delay setting a book-building range on the IPO to later in the week. That pricing originally had been planned for Monday.
A week ago, the family-owned holding company announced its intention to float the operating company by selling 100 million in existing nonvoting shares in Schaeffler AG, which will itself sell 66 million fresh nonvoting shares.
Soon afterward, the scandal over emissions-cheating at Volkswagen widened, triggering a profit warning by Volkswagen and the resignation of then Chief Executive Martin Winterkorn, and dragging automotive and car supplier shares substantially lower.
The Schaeffler family holds about 46% in Continental via different holding companies.