Volvo IPO back on the table

Volvo could be the up coming major automaker to go general public.

The automaker mentioned on Wednesday that its board is analyzing the chance of an first general public offering and listing on the main inventory trade in Sweden as early as this 12 months.

The announcement follows Volvo’s choice in February to rule out a entire merger with its parent corporation, Geely. The two have a shut collaboration nevertheless that extends to the sharing of technologies and output services, and Geely would stay the primary shareholder of Volvo following any IPO.

Volvo came arrived close to launching an IPO in 2018 but set issues on hold owing to considerations the inventory selling price could be hurt by the trade war at the time, mostly involving the United States and China but also amongst the U.S. and Europe.

Estimates at the time valued Volvo at up to $30 billion.

Geely has performed an extraordinary task of reworking Volvo given that getting the brand from Ford in 2010. Volvos these days are comparable with Germany’s most effective and the firm is also growing with the Lynk & Co. and Polestar sister makes, as properly as launching its initial electrical vehicles.

Volvo is also in the process of introducing a next-era modular system for massive vehicles, recognized as SPA2. It will make its debut next year in a redesigned XC90. The new system will assistance a higher stage of self-driving capability, a technology Volvo is producing by way of its Zenuity subsidiary.

“We have supported the transformation and progress of Volvo Cars for the previous 10 yrs, enabling the firm to become a accurate high quality model with enhanced profitability,” Eric Li, Geely’s chairman, reported in a assertion. “As we look ahead, Volvo Cars is in particular perfectly positioned to supply ongoing expansion and harness the total potential of electrification and the shipping and delivery of secure autonomous push features.”