Volvo considers IPO with Chinese Geely Holdings to remain its major shareholder

According to a recent company announcement, Swedish automaker Volvo Cars is considering an initial public offering on Sweden’s main stock exchange later this year, with Chinese company Geely Holdings to remain its major shareholder, the company recently announced.

In an article, the media Apple Daily reports that the listing is not finalized yet and the listing decision still depends on Volvo’s market conditions. In March this year, Bloomberg News also reported that Geely Holdings was considering restarting the listing plan and that the business might be valued at around US$20 billion.

Following the global crisis in 2008, Geely Holdings invested $ 10 billion into Volvo Cars which led to a 10-fold increase in Volvo’s value in the past decade. The companies had plans to merge but that plan was abandoned in February with both companies choosing to maintain their existing.

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