Volvo abandons its plans for an IPO

Less boxy, still safe

VOLVO puts safety first. The Swedish carmaker was the first to introduce three-point seat belts in 1959. Its aspiration is that its technology will ensure that no one is killed or seriously injured in any Volvo sold after 2020. Safety issues may also explain the decision on September 10th to shelve long-held plans for an initial public offering, which Volvo had hoped might value the firm at $30bn. At that lofty price it might have struggled to protect investors’ money as conscientiously as it looks after the well-being of passengers.

The firm said the unpredictability of a brewing global trade war had persuaded it to wait. But an IPO that valued the upmarket Swedish carmaker on a par with Audi—which makes nearly 2m cars a year, three times as many as Volvo produces—always looked a stretch. Its owner, Geely, a Chinese carmaker, decided to delay when it became clear that the firm would not merit such a high valuation.

Volvo is...

via Business Feeds

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