Por Helena Soderpalm, Arno Schuetze y Abhinav Ramnarayan
STOCKHOLM, Sept 15 (Reuters) – China’s Geely Holding is in advanced talks with banks to list its Volvo Cars unit in the coming weeks, three sources told Reuters, in what is expected to be one of the initial public offerings ( Europe’s largest IPOs this year.
Volvo Cars is targeting a valuation of around $ 20 billion in the planned Stockholm IPO, according to sources, one of whom said the launch was scheduled for late September.
Goldman Sachs and SEB are leading the deal, while other banks including BNP Paribas, Carnegie and HSBC are also involved in the deal, the sources added.
Volvo Cars declined to comment. Geely also did not respond to an emailed request for comment outside of business hours in China. SEB and Goldman Sachs declined to comment on the issue. The other banks were not immediately available.
Geely, which bought Volvo from Ford Motor more than a decade ago in the largest takeover by a Chinese company of a foreign automaker, tried to take the Swedish firm public in 2018 but later withdrew the deal citing trade tensions and a decline in auto stocks.
Traditional automakers have lost steam in recent times, a period in which Tesla has become one of the most valuable companies.
Many European companies have turned to the power sector, including Volvo Cars, which aims to make only electric cars by 2030 and owns a 49.5% stake in electric car maker Polestar.
Gothenburg-based Volvo Cars aims to secure a valuation of about $ 20 billion, according to one of the sources, while another mentioned a possible range of $ 20 billion to $ 30 billion.