Zhejiang Geely Holding Group is considering restarting the IPO plan of its subsidiary Volvo Cars, the valuation of the business may be around US$20 billion.
People familiar with the matter stated that Geely Holdings that is held by a small number of people, has been in discussions with potential advisers and intends to sell Volvo Car shares as early as this year.
It is reported that the company is considering listing in Stockholm and Amsterdam. Due to the confidentiality of the information, these individuals requested to remain anonymous.
The current discussion is at a preliminary stage, and details like potential valuation may change. Volvo Cars will also study and judge various IPO plans and, if necessary, will make regulatory disclosures in due course.
Geely recently answered that, as previously announced on February 24, 2021, Volvo Cars and Geely Automobiles will continue to focus on deepening cooperation in multiple fields while maintaining their independent corporate structures.
This approach will also give the two companies the opportunity to explore various options in the capital market to realize shareholder value. Volvo Cars will consider different options, including potential IPOs and stock market listing plans. So far, no decision has been made.
As early as 2010, Geely acquired Volvo from Ford Motor Company for US$1.8 billion. In 2020, Volvo sold 661,713 cars. China is its largest market, followed by the United States, Sweden, and Germany.
In February last year, Geely Automobile announced that it would merge with Volvo inequity and was considering listing in Hong Kong, China and Sweden.
In February of this year, the two parties have announced that they will abandon the merger of equity, but while maintaining their existing independent company structures and achieving strategic goals, they will merge and collaborate in business areas like powertrain, three-electric technology, and highly automated driving.
(Via)
