Volvo Cars gearing up for a $20 billion IPO
Volvo Cars owner Geely Holdings is in advanced talks with banks to list the Swedish automaker in the coming weeks, writes Reuters.
Three different sources confirmed the rumour to Reuters and if the deal goes ahead, it will be one of the largest Initial Public Offerings (IPOs) in Europe in 2021.
Goldman Sachs and SEB are said to be leading the transaction, BNP Paribas may also be involved, although Reuters was unable to get confirmation of the story from any of the main players involved before filing the article.
Not the first time
However, this isn’t the first time Geely has sought to float shares in Volvo Cars. It tried back in 2018 but pulled the deal citing trade tensions and a downturn in automotive stocks.
It’ll be interesting to see if the deal goes ahead this time as traditional car makers struggle to compete with electric vehicle manufacturers. Volvo Cars has committed to making only fully electric cars by 2030 and it owns a 49.5% stake in pure EV maker Polestar.
One thing’s for sure, Fleet Europe will be following this story with interest.
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