Geely Holding is in discussions with Volvo Cars about the latter's IPO, which is likely to occur by the end of September, three sources said, according to a Reuters report on September 15.
One source said Volvo Cars plans to go public in Stockholm with a target valuation of $20 billion, while the other two sources mentioned valuation expectations of $16 billion and $20-30 billion, respectively. This may also become one of the largest IPOs in Europe this year.
Volvo's $20 billion valuation would be equivalent to six to seven times its earnings, a valuation level that analysts believe is on the high side. But it's worth noting that Volvo's rivals Daimler and BMW are valued at comparable levels, and Tesla is valued at a staggering 70+ times.
Volvo Cars declined to comment on the rumors, and Geely has not responded to Reuters' request for comment as of now.
Volvo Cars on Track for IPO, Valuation May Reach $20 Billion