Thursday, December 15, 2016
Perfect Timing For Volvo Cars IPO
Via The Swedish Wire: Volvo Car Group, which is owned by China’s Zhejiang Geely Holding Group Co, has denied media speculation that the company is planning an initial public offering. Swedish business daily Dagens Industri said that Volvo Cars and its Chinese owner could decide this year on whether to go public in 2017. The timing for an IPO would however be perfect, following rising sales and profits. Lately speculations have surfaced more frequently that the the automaker was considering a listing. It plans to sell 800.000 cars annually by 2020 — a third of those produced in China — with 200,000 for domestic sale and the rest for export. The company could also take advantage if the current bullish stark market sentiment, analysts say. The Gothenburg-based firm sold 473,528 cars in January through November, up 7% year-on-year, helped by strong demand for its XC90 SUV, the first new model developed under Geely ownership and leaving it poised for its third straight year of record sales, Reuters said. The news bureau added that Volco also returned to international bond markets earlier this year, with its first corporate bond raising 500 million euros ($533 million), followed by its first Swedish bond issue last month. The Swedish car maker was bought by Chinese Geely in 2010. China sales have been a major force in Volvo’s recovery from years of poor performance under Ford, the Financial Times said. Sales have tripled over the past three years, making China Volvo’s largest single-country market.