China’s Geely said to pick Citi, others for Volvo Cars IPO

The grill of the Volvo AB S 90 vehicle is seen during the 2017 New York International Auto Show (NYIAS) in New York, U.S., on Wednesday, April 12, 2017. Photographer: Mark Kauzlarich/Bloomberg

Volvo Cars owner Zhejiang Geely Holding Group Co. has selected Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley to advise on an initial public offering for the Swedish carmaker this year, according to people with knowledge of the matter.

China’s Zhejiang Geely and Volvo have discussed valuing the Swedish automaker in a range of $16 billion to $30 billion in a stock sale, the people said, asking not to be named as the deliberations are confidential. The companies held meetings in Sweden and Hong Kong this month to discuss a dual listing in both venues, they said.

The shares could be sold as early as this fall, though no final decisions have been made and the plans may change, they said. An IPO is an option but the decision is up to the owner, a representative for Volvo Cars said, declining to comment further. Representatives for Geely, Citigroup and Morgan Stanley declined to comment. A spokesman for Goldman Sachs didn’t immediately comment.

Volvo Cars may seek to benchmark itself against automakers including Hong Kong-listed Geely Automobiles Holdings Ltd. and Tesla Inc. in the potential IPO, the people said.

Closely held Zhejiang Geely, which is backed by billionaire Li Shufu, acquired Volvo in 2010. The Chinese company’s Swedish unit holds 99 percent of Volvo Car AB, while a group of Swedish institutional investors holds the remaining 1 percent through another class of shares, according to its website.

The Gothenburg-based automaker posted a 1.8 percent decline in first-quarter profit. The U.S. was the main driver for its sales growth, while China continued to be its biggest market, closely followed by Sweden and the U.S.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.