Volvo IPO valued lower than expected

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