(Yicai Global) May 14 -- Swedish carmaker AB Volvo has responded to reports that Chinese parent company Zhejiang Geely Holding Group aims to float the firm this September, stating that while an initial public offering is among the various options being considered, Geely is yet to make a final decision on the matter.
The company responded directly to Yicai Global following a Bloomberg report on May 11 stating that Hangzhou-based Geely has enlisted the services of Citibank Inc., Goldman Sachs Group Inc. and Morgan Stanley Capital International Inc. to assist with an IPO, with a potential valuation of USD16 billion to USD30 billion.
Geely and Volvo have held meetings in Sweden and Hong Kong regarding a possible listing on their respective stock markets, Bloomberg added, citing a source familiar with the matter.
Volvo has considered an IPO in the past, with an official statement at the end of 2016 stating that it had pooled some SEK5 billion (USD582 million) in capital from Swedish investors through the newly issued preferred stocks. Reports emerged last year that it was planning to garner another USD500 million from Chinese investors to prepare for its future listing. Company Chief Executive Håkan Samuelsson responded at the time, saying that an IPO would be subject to Geely's final decision.
Editor: William Clegg