(Reuters) – Chinese company Geely [GEELY.UL] is delaying the listing of Volvo Cars (IPO-VOLVO.ST) due to valuation concerns amidst a global trade war, the Financial Times reported.
The logo of Geely Automobile Holdings is pictured at the Auto China 2016 auto show in Beijing, China April 25, 2016. REUTERS/Kim Kyung-Hoon
Geely believed it had the backing for a flotation valuing Volvo Cars at $30 billion, but was worried that investors, many of whom were expected to be Swedish pension funds, would see the stock slip after the float, the FT reported.
Volvo Cars Chief Executive Hakan Samuelsson told the newspaper that “conditions right now are not optimal to give certain upside for the investors” and “stable market conditions” were needed for a listing.
Geely and Volvo Cars were not immediately available for comment.
In May, Reuters reported that Geely had hired three investment banks for an initial public offering this year that could value Volvo Cars in a broad range of $16 billion to $30 billion.
Reporting by Mekhla Raina in Bengaluru; Editing by Sunil Nair