Chinese-owned Swedish brand is interested in floating in both Hong Kong and Stockholm; valued at between £12-22 billion
According to Bloomberg, the burgeoning Swedish brand’s parent company Geely has consulted three major banking firms – Goldman Sachs, Citigroup and Morgan Stanley – on the possible move.
Sources disclosed that a company value of between £12 billion and £22 billion is being discussed, and Geely aims to float the company on both the Hong Kong and Stockholm exchanges to reflect its Chinese ownership and Swedish management. Geely itself is already listed on the Hong Kong exchange.
The flotation would be the latest in a slew of large financial moves by Geely, led by company chairman Li Shufu. This time last year, news broke that Geely had acquired Malaysian brand Proton and with it a controlling stake in Lotus.
Volvo boss Håkan Samuelsson said that the move would be the decision of Li, rather than a decision coming from the brand’s headquarters in Gothenburg, Sweden.
Earlier this year, Geely became the largest single shareholder in Mercedes-Benz parent company Daimler, acquiring close to 10% of the German giant. This investment was to aid Geely’s catalogue of brands – most notably Volvo – in the race to electrification, given Mercedes’ already-advanced EV development.
The flotation would also be the latest in a string of growing companies considering stock exchange entries; Aston Martin and McLaren have both explored the possibility, while Tesla’s stock market operations are well-documented and often volatile.
Under Geely, Volvo has experienced an upswing in popularity, with safety and design-led offerings garnering industry accolade as well as sales successes – most notably the XC40 small SUV, which became the brand’s and the UK’s fastest-selling newly launched car.