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Volvo Cars IPO Draws Lower Valuations in Initial Feedback

Investors valuing firm at about $12 billion to $18 billion
Owner Zhejiang Geely had discussed value of up to $30 billion

A Volvo XC90 automobile, produced by Volvo Cars, sits on display at the Paris Motor Show in Paris.
Photographer: Simon Dawson/Bloomberg

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By Ruth David and Vinicy Chan

July 23, 2018 at 6:43 PM UTC

Updated on

July 24, 2018 at 4:08 PM UTC

This article is for subscribers only.

Initial investor feedback has valued Volvo Cars far below owner Zhejiang Geely Holding Group Co.’s top-end estimates for a potential listing, people familiar with the matter said.

Select institutional investors have indicated the Swedish carmaker is worth about $12 billion to $18 billion in early meetings to discuss an initial public offering, the people said, asking not to be named as the deliberations are confidential. China’s Zhejiang Geely and Volvo Cars had discussed a value of $16 billion to $30 billion, people familiar with the matter said in May.