Geely was planning to make Volvo a publicly traded company by the end of the year. Earlier in the year, the company hired financial advisors to see if it would be possible. But over the weekend, the Financial Times reported that Geely has scrapped those plans.
“We’ve come to the conclusion that the timing is not optimal for an IPO right now,” Volvo Chief Executive Hakan Samuelsson told Reuters.
The on-going trade war between the U.S. and China, and concerns about something similar happening between the U.S. and Europe are listed as the main concerns. But a source revealed that Geely boss Li Shufu thought Volvo needed to make bigger endroads into China before going public.
Sources tell Reuters that Geely was aiming to have Volvo's IPO valued between $16 and $30 billion. Some analysts questioned the $30 billion estimate.
Volvo said a listing was possible in the future.