Geely has reportedly selected Citigroup, Goldman Sachs, and Morgan Stanley to advise on an initial public offering (IPO) for Volvo Cars.
Bloomberg reports that the Swedish automaker and its Chinese owner expect the company to be valued between $16 billion and $30 billion in a stock sale.
Those with knowledge of the matter claim that, this month, meetings have been held in both Sweden and Hong Kong in what could prove to be a dual listing in both markets.
Representatives from Geely, Citigroup, Goldman Sachs, and Morgan Stanley have all declined to comment. No final decision has been made but an IPO could take place as early as this fall. Geely is still working on the bank line-up and may choose to add further advisers.
In March, Volvo chief executive Hakan Samuelsson said the decision of a share sale was up to the billionaire owner of Geely, Li Shufu.
Geely owns 99 per cent of Volvo. The remaining 1 per cent is owned by a number of Swedish institutional investors through a distinct class of shares.
If Volvo is to be listed publically, it could help it raise money to fund the Swedish automaker’s ambitious electrification plans. Last month, Volvo announced that it wants 50 per cent of sales to come from electric vehicles by 2025.