[blackwasp]

Geely might postpone Volvo's initial public offering (IPO) due to lower investor valuation of the Swedish carmaker. The Chinese company owns 99 percent stake and had planned to take the company public later this year.

According to a media report, few large investors valued Volvo between US $12-18 billion while Geely had valued the company between US $16 billion to US $30 billion. The difference is like to cause the IPO to be postponed for better valuation at a later date. It is also reported that there were plans to sell the shares as early as late 2018.

Geely acquired Volvo in 2010 and has helped the company refresh its line-up towards electric cars. The Swedish company was one of the first to announce a shift to electric and hybrid vehicles as well as phasing out diesel engine development.



Source: Bloomberg

Link to the Team-BHP News

[SmartCat]

Valuation by "few large investors" at $12 to $18 billion seems more realistic, inline with current valuations of Daimler, VW, BMW & Tata Motors (meaning Jaguar Landrover). According to Volvo Cars annual report, they recorded a net profit of around $1 billion in 2017 and $750 million in 2016.

[the_skyliner]

Originally Posted by blackwasp

According to a media report, few large investors valued Volvo between US $12-18 billion while Geely had valued the company between US $16 billion to US $30 billion. The difference is like to cause the IPO to be postponed for better valuation at a later date. It is also reported that there were plans to sell the shares as early as late 2018.

Oh, this is going to be hard on Geely. Chinese investors are under tremendous pressure to generate cash by disinvesting the offshore investments and such delays are really bad for them. Though the valuation seems to be inline with others so getting a higher valuation anytime soon looks unrealistic.

[Doge]

Originally Posted by the_skyliner

Oh, this is going to be hard on Geely. Chinese investors are under tremendous pressure to generate cash by disinvesting the offshore investments and such delays are really bad for them. Though the valuation seems to be inline with others so getting a higher valuation anytime soon looks unrealistic.

Geely is a global brand with global aspirations, its management is unlike other Chinese firms that I have come across.
Volvo has quite a lot of potential to be one of the leading luxury car makers and they should be able to increase their value easily, judging by the way Geely revived the brand.
I also feel that Geely would be the first "Hyundai" of the Chinese auto industry, so lots of potential.

[GTO]

Originally Posted by blackwasp

Geely might postpone Volvo's initial public offering (IPO) due to lower investor valuation of the Swedish carmaker. The Chinese company owns 99 percent stake and had planned to take the company public later this year.

According to a media report, few large investors valued Volvo between US $12-18 billion while Geely had valued the company between US $16 billion to US $30 billion.

Considering Geely bought Volvo from Ford for just $1.8 billion, that turned out to be one heck of a purchase! It's a similar story with Tata buying Jaguar-Land Rover for a little over $2 billion (the company is worth many times that today). Ford messed up, but at that time, both were loss-making brands and no one can argue with their need to focus on the core brand Ford. It was part of the plan that made Ford avoid the bankruptcy that GM & Chrysler underwent.

I think times are very good for Volvo and Geely has done an outstanding job . It's got a bright, bright future.

[PrideRed]

I was reading a comparison report and was pleasantly surprised to see a Volvo winning the battle. Their cars are absolutely drool worthy and comes packed with features. Its about time Volvo starts working on their Brand as their cars are already sitting at the top.

https://www.autocarindia.com/car-com...parison-409106

[akshaymahajan]

Just read this: Eyeing IPO, Volvo Cars to take full control of its Chinese business

https://www.reuters.com/business/aut...vs-2021-07-21/