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Volvo IPO Delayed by Trade War Fears
Volvo Car Corp. tells the Financial Times that it will delay a planned initial public offering until next year because of uncertainties about escalating U.S. trade fights with China and Europe.
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Volvo Car Corp. tells the Financial Times that it will delay a planned initial public offering until next year because of uncertainties about escalating U.S. trade fights with China and Europe.
The carmaker, a unit of China’s Zhejiang Geely Holding Group Ltd., had expected to float an IPO before the end of this year that valued Volvo at $30 billion.
But CEO Hakan Samuelsson says the company fears that the offered stock price could drop amid investor worries over potential tariffs that would affect access to key markets. He notes that the timing of an IPO rests with Geely owner Li Shufu.
“We have no fixed timescale and no hurry,” Samuelsson tells FT. He adds that he is personally neutral about an IPO and has “no ambition to be a listed-company CEO.”
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