Login

Reload

Remember me Forgot it?

Not a subscriber?

Click on the button below to create your account and get immediate access to Xinhua Silk Road Database.

Start a Free Trial

Subscribe

Belt & Road Weekly Subscription Form

Research Report

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

China Brand

HOME > China Brand


Geely eyes Volvo Cars public float

May 16, 2018


geely volvo

BEIJING -- Zhejiang Geely Holding Group said it is mulling an initial public offering for Volvo Cars, a Swedish carmaker it bought from Ford in 2010.

"We are looking at the possibilities; we haven't made a final decision on how to proceed as of yet," a Geely spokesperson said on Friday.

He made the comment in response to media reports that Geely has selected investment banks including Citigroup Inc to advise on an IPO this year.

Bloomberg reported that Geely and Volvo have discussed valuing the Swedish automaker in a range of 16 billion U.S. dollars to 30 billion U.S. dollars in a stock sale.

It also said the two are planning a dual listing in both Hong Kong and Sweden, and the shares could be sold as early as this fall.

"(It is) speculation," said the Geely spokesman, adding that "there is no confirmation".

An IPO is an option but the decision is up to the owner, a representative for Volvo Cars told Bloomberg, declining to comment further.

Volvo had revenues of 210.9 billion krona (24.4 billion U.S. dollars) in 2017 with an operating profit of 14.1 billion krona, according to Reuters.

Volvo sold 200,042 cars from January to April this year, up 13.6 percent year-on-year. In China, its largest market, it sold 39,210 cars, up 22.4 percent.

Geely Automobile, which is also owned by Zhejiang Geely Holding Group, is listed in Hong Kong.

Its shares rose 3.74 percent in Hong Kong trading on Friday, after doubling over the last 12 months.

Geely has been one of the best-selling Chinese passenger carmakers in China, the world's largest car market.

It sold 524,000 cars from January to April, ranking second only to State-owned SAIC Motor, soaring by some 40 percent year-on-year, according to statistics from the China Association of Automobile Manufacturers.

China sold 2.32 million cars in April, up 11.5 percent and total sales this year reached 9.5 million, up 4.8 percent year-on-year, according to CAAM.

Passenger car sales in the first four months hit 8 million, growing 4.5 percent year-on-year, mainly thanks to sales of SUVs.

As the fastest-growing segment, SUV sales grew 12.9 percent year-on-year to 3.47 million units. Although the growth rate has slowed down compared with previous years, it was the only segment that saw double-digit growth this year.

Sedan sales totaled 3.79 million units, edging up 3.1 percent. Multipurpose vehicle sales fell 12 percent, and minivans saw a 36.9 percent slump in the same period.

Compared with conventionally fueled cars, new energy vehicles are a different story. A total of 225,310 such cars were sold from January to April, up 149.2 percent year-on-year. (Source: China Daily)

Most Read


Related Coverage

Focus

Think Tank

  • China has learned a lot from trade dispute: expert

    May 25, 2018

    The trade dispute between China and the US has enabled China to rethink the ...

  • German automakers likely to be biggest winner amid C...

    May 23, 2018

    German automakers is more likely to be the primary beneficiaries as China re...

  • Research and Evaluation Report on China's Business E...

    May 22, 2018

    Chinese Academy of Fiscal Sciences issued a massive research report on the "...

  • Surging demand from Chinese mainland swells Hong Kon...

    May 22, 2018

    Demand for the HPV vaccine that prevents the onset of cervical cancer contin...

  • Ask Us A Question

    If you have any questions, please enter them in the box below.

    Reload

    Write to Us

    Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

    Click on the button below to create your account and get imhttp://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

    Start a Free Trial