Volvo Cars CEO Hakan Samuelsson said on Monday that the company’s lower-than-expected valuation of the initial public offering (IPO) suggests that the Swedish automaker may need more time to get Investors are convinced of its plan to transform into a pure electric vehicle manufacturer. Volvo Cars is owned by the Chinese company Zhejiang Geely Holding Group.
Samuelson told The Wall Street Journal that the IPO valued Volvo Cars at about $19 billion, which is at the low end of the target range, and is far below the initial belief that Volvo is in the IPO transaction. The valuation of up to 25 billion US dollars is expected.
“The important thing is to leave the opportunity for new shareholders to participate in the valuation,” Samuelson said. “The important thing is to see the long-term valuation outlook.”
Volvo Car’s stock is expected to be listed for trading on Friday. About 18% of the company’s stock will be freely traded, and the remaining 82% will be held by Geely.
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