Volvo is valued at 25 billion dollars

Swedish automobile concern Volvo announced its IPO on the stock exchange. The manufacturer plans to carry out an IPO on the Stockholm trading platform, the business valuation is 25 billion dollars.
The concern belongs to the Chinese automobile company Zhejiang Geely Holding Group, and previously Volvo and Geely were considering a merger, but later decided to abandon the idea. At the same time, the companies have strengthened cooperation in the field of electric vehicles, they will also jointly develop software and technology for unmanned devices. Details of the future listing are still unknown, but The Wall Street Journal claims that official information will be available soon.
The IPO is a good move for the Swedish manufacturer. Going public will allow Volvo to attract more shareholders and reduce dependence on Chinese investors.

car concern VolvoIt should be noted that the carmaker was planning an initial public offering back in 2018, but then had to suspend the listing process due to the tense environment and the risk of an intensified trade war. At that time, the U.S. stated its intention to increase tariffs on European and Chinese car supplies. Despite the fact that at the time the parent company Geely valued Volvo at $30 billion, there was a serious threat that the manufacturer’s share price could plummet after the listing. This would have had a very negative impact on investors, including Swedish pension funds.
The Chinese concern acquired Volvo in 2010 from the American company Ford Motors. The latter was forced to sell the Swedish manufacturer after it suffered major losses during the financial crisis. Then the deal between Geely and Ford was $1.8 billion. After that, Chinese automobile concern invested actively to restore prestige and positions of Volvo, and introduced its production to the huge market of People’s Republic of China. Due to investments Geely the manufacturer has expanded its lineup, began producing new models of cars.
According to experts, the Chinese company’s investments in Volvo for the entire period amounted to 11 billion dollars. Moreover, these investments allowed the company to turn from a loss-making company into a profitable and strong market player. During the first six months the sales volume of the Swedish manufacturer has increased by 41% over the same period last year. During those months, 380,757 vehicles were sold, with sales in the U.S. market up 47% to 63,754 units. However, Europe remains Volvo’s largest sales segment with 166,822 vehicles. Profit was about $1.5 billion and revenue was $16.2 billion.