Volvo Cars IPO deemed unlikely after Geely's Daimler investment
Volvo Cars, the Swedish auto manufacturer, is unlikely to list after news that Chinese owner, Geely, has acquired almost 10% of German Daimler, according to Dagens Industri.
The Swedish business daily reported that a listing of Volvo Cars seemed very likely in 2016 when the company issued preference shares to three Swedish institutions for SEK 5bn (EUR 498m) which could be converted into ordinary shares in conjunction to an IPO. Volvo Cars' managing director, Hakan Samuelsson, also presented the company to potential investors in 2017.
However, the paper reported, citing unnamed observers, that Geely's entry into Daimler has drastically reduced the likelihood of a listing. One unnamed source commented that Geely owner Li Shufu would have to be far more communicative about his plans for Swedish investors to consider investing in an IPO of Volvo Cars.