NEW YORK/STOCKHOLM – The owner of Sweden’s Volvo Cars has hired three investment banks for an initial public offering (IPO) this year valuing the company at between $16-$30 billion, a source familiar with the matter said on Thursday (May 10), confirming an earlier Bloomberg story.
China’s Zhejiang Geely Holding Group, which bought Volvo Cars in 2010, has picked Citigroup, Goldman Sachs and Morgan Stanley for a listing, the source said, who asked not to be identified because the deliberations are confidential.
The potential listing could take place as soon as September this year, the source said, although the ultimate timing will depend on market conditions.
Spokespeople for Citigroup, Goldman Sachs and Morgan Stanley declined to comment. Geely was not immediately available for comment.
The source said the three investment banks at this stage were joint co-managers and that no lead bank had yet been appointed.
Volvo Cars had revenues of 210.9 billion crowns ($24.4 billion) in 2017 with an operating profit of 14.1 billion crowns.