Volvo Cars said it is considering an initial public offering months after calling off earlier plans to merge with Geely Automobile Holdings, the Chinese manufacturer owned by its parent, Bloomberg reports.
The board of the Swedish carmaker has decided to evaluate a possible listing on the Nasdaq Stockholm stock exchange later this year, according to a statement. Bloomberg News reported in March that owner Zhejiang Geely Holding Group was considering an IPO that could value the business at around US$20 billion.
Volvo’s more than a decade under Chinese control has been a success story. While pandemic disruptions snapped a six-year streak of record sales, demand came roaring back and fueled record deliveries and profit in the second half. Geely has been a supportive owner, helping fund construction of the company’s first-ever U.S. car plant and the investment it will take to go fully electric by the end of the decade.
“We have supported the transformation and growth of Volvo Cars for the last 10 years, enabling the company to become a true premium brand with improved profitability,” Eric Li, Geely Holding’s chairman, said in the statement. “Volvo Cars is especially well positioned to deliver continued growth and harness the full potential of electrification and the delivery of safe autonomous drive functions.”