Report: Geely selects banks to advise on Volvo IPO

Volvo logo

Volvo could be the next major automaker to go public.

The Swedish automaker’s parent company Zhejiang Geely has selected investment banks Citigroup, Goldman Sachs and Morgan Stanley to advise on an initial public offering, reported on Thursday citing people familiar with the matter.

Geely is said to be looking at a value of between $16 billion and $30 billion and a dual listing on exchanges in Hong Kong and Sweden as early as this fall.

When contacted by , a spokesperson for Volvo said an IPO was an option but that the decision was entirely up to Geely.

Aston Martin is another major automaker in the headlines recently regarding an IPO. Ferrari was the last major automaker to launch an IPO, with its shares being listed for the first time in 2015 with a price tag of $52, which gave the company a market valuation of $9.8 billion at the time.

Geely has done an impressive job of transforming Volvo since acquiring the brand from Ford in 2010. Volvos today are comparable with Germany’s best and the company is also expanding with the Lynk & Co. and Polestar sister brands. Volvo is also in the process of introducing a new generation of compact cars, starting with the impressive XC40, and is a year out from entering the electric car race.

Volvo delivered 572,000 cars in 2017 and has a target of 800,000 cars by 2020. The company also reported a 2017 operating profit of $1.64 billion and is on track to increase this in 2018.

Check Also

2020 Porsche 911 Turbo Cabriolet spy shots

Porsche is out testing a new generation of the 911, the 992, and the latest prototype spotted is for the car's Turbo Cabriolet variant. The new 911 will be revealed late this year or early next, initially in Carrera and Carrera S guises. The 911 Turbo should trail the basic models by six months to a year. We expect it to go on sale in the United States late...

2019 Audi S6 Avant spy shots

Audi engineers are hard at work developing a redesigned S6 and one of the prototypes has just been spotted. The prototype is for the wagon body style, referred to by Audi as an Avant. Audi has already revealed the new A6 Avant (shown below), which means the sportier S6 Avant can't be far. It should debut alongside an S6 sedan late this year or early next...