Volvo Car announced its intention to conduct an IPO on the Stockholm exchange on October 4, and revealed detailed plans on October 18. The automaker produces only passenger cars, while commercial vehicles, trucks, buses under the Volvo brand have been produced by the Volvo Group since 1999. The passenger car maker was spun off from the Volvo Group in 1999 and sold first to Ford Motor and then, in 2010, to China’s Zhejiang Geely Holding Group.
Volvo Car is expected to start accepting applications from investors on October 19, and the first trading in shares will take place on October 28. In early October, The Wall Street Journal (WSJ) reported, citing experts, about the value of Volvo Car at $ 25 billion. Volvo Car itself has so far set a range of $ 18.84-23.11 billion and intends to raise about $ 3 billion. the lower end of the range, the company has become an order of magnitude more expensive in 11 years: Zhejiang Geely bought it for $ 1.8 billion.
The current CEO of Volvo Car, Hakan Samuelsson, has been identified by the Financial Times (FT) as a major figure in the automaker’s resurgence. British car magazine Autocar, when presenting it with its Autocar awards last year, noted: “If it is an exaggeration to say that Samuelsson has worked wonders at Volvo since he became CEO [в 2012 г.], this exaggeration is insignificant. “
As noted by the WSJ, most of the world’s auto giants are trading at 4-6 times their annual profit. For example, BMW, one of Volvo Car’s tough competitors, is 5 times higher. And Volvo Car, it turns out, is counting on an estimate 7-9 times higher than the profit. This raises an important question, the WSJ notes: What is Volvo Car doing differently than the market leaders if it hopes for a bigger multiplier than theirs?
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