It looks like a Volvo IPO isn’t going to take place anytime soon for a few reasons.
According to the car company, a Volvo IPO isn’t going to launch in the near future partially due to ongoing trade wars. The U.S. has been placing tariffs on certain products and this has lead to wavering relationships and negotiations between it and other nations.
The trade wars aren’t the only reason that a Volvo IPO is no longer in the works. The company also notes that issues with the current business cycle are also to blame. The automotive industry has been in a bit of a downward trend lately, which may not be the best time for the car company to launch an IPO.
There have also been some concerns from analysts about a possible Volvo IPO. The company was shooting for a valuation between $16 billion and $30 billion. However, some analysts believe that the $30 billion valuation was much too high of a goal for the company to shot for.
While there is no Volvo IPO on the immediate horizon, all hope is not lost. Hakan Samuelsson, the CEO of Volvo, says that the company may still chose to launch an IPO sometime in the future, but when is still unknown, reports
Reuters.
“It’s important to know that we have headroom, so we can look the investors in the eye a year after the IPO,” Samuelsson told Financial Times. “It is still an option, a very realistic option, but will not happen immediately.”
As of this writing, William White did not hold a position in any of the aforementioned securities.
