MoneyVolvo plans to go public: The Company is valued...

Volvo plans to go public: The Company is valued at $25billion

The Swedish automaker, which is owned by the Chinese corporation Geely, is planning an IPO. The company is estimated at $ 25 billion. 

Volvo will list its shares on the stock exchange in Stockholm. Details may be announced on October 4, according to The Wall Street Journal.

Earlier Reuters wrote with reference to sources that Volvo plans to hold an IPO.

Merger with Geely failed

The Swedish automaker and its parent company, Geely, previously considered a merger, but scrapped those plans in 2021.

But the companies intend to closely cooperate in the field of electric vehicles, software and unmanned technologies.

Volvo’s second attempt Volvo wanted to go public in 2018, but it had to push back the plans due to fears of a global trade war, the Financial Times wrote.

Then the United States threatened to increase tariffs on imports of cars from Europe and China.

Geely believed that Volvo could have received a valuation of $ 30 billion. However, the company was concerned that the shares after the placement could be greatly reduced, and this would hit investors, including the Swedish pension funds.

A bit of history

Volvo was owned by the American Ford Motor until 2010, but the company suffered greatly during the global financial crisis and sold Geely for $ 1.8 billion.

Over the next decade, the Chinese carmaker financed the rebuilding of Volvo, opening up the Chinese market for the Swedish company and providing the funds to build new models.

In total, Geely invested $ 11 billion in the company.

In the first half of 2021, Volvo reported a 41% increase in sales year-on-year to 380,757 vehicles.

The company’s US sales rose 47%. Europe remains the largest market for Volvo (166,822 vehicles).

Net profit amounted to 9.6 billion Swedish kronor ($ 1.5 billion), revenue – 141 billion kronor ($ 16.2 billion).

Volvo switches to production of electric cars

Volvo was one of the first to phase out internal combustion engines and stopped production of fossil fuel-only cars in 2019.

Instead, the company makes electric or hybrid vehicles. Volvo recently announced that it will fully switch to electric vehicles by 2030.

At $ 25 billion, Volvo will be more than European car maker Renault, which has a market value of just over $ 10 billion, but less than the auto leaders General Motors, Volkswagen and Tesla.

Samantha Schnurrhttps://www.newsalarms.com/
Samantha started her editorial career chasing celebrities as a magazine editor. Along the way, she also started chasing passport stamps, writing for Travel + Leisure, Condé Nast Traveler, Airbnb Magazine, Lonely Planet and Washington Post. She now covers travel and pop culture while wandering the world — often reluctantly running races.

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