The Zhejiang Geely Holding Group, the parent company of Volvo Cars, is once again studying taking the Swedish vehicle manufacturer to the stock market in an operation that would value the company at some 20,000 million dollars (almost 17,050 million euros, at the current exchange rate).
According to sources familiar with the matter, cited by Bloomberg, Geely would be looking for advice for a possible initial public offering of Volvo Cars shares. In addition, you would also be considering possible exchanges such as the one in Stockholm or the one in Amsterdam. An operation that could take place this year.
All this after the president of Geely, Li Shufu, already tried in 2018 to launch a public offer for the sale of Volvo Cars shares, with a valuation that could be up to 30,000 million dollars (25,570 million euros).
A way of financing
The current market context and the need for a shift towards electric mobility have forced manufacturers to seek financing for the huge investments required.
Last month, Geely Holding scrapped its plans to merge Volvo Cars with the publicly traded unit of Chinese group Geely Automobile. Instead he decided group engine operations of the two companies into a new company and form a technology development team.
The same sources have reported that these decisions are at an early stage, so the valuation of the company could change. For its part, a Volvo Cars spokesperson has reiterated that the agreement reached in February “allows both companies to explore the respective options of the capital market to obtain value for shareholders.”
“Volvo Cars will review several options, which could include plans for a possible initial public offering and listing on the stock market. So far, no decisions have been made,” they added from the company.