May 10, 2018 / 8:00 PM / 9 months ago

Volvo Cars owner picks banks for IPO - source

NEW YORK/STOCKHOLM, May 10 (Reuters) - The owner of Sweden’s Volvo Cars has hired three investment banks for an initial public offering (IPO) this year valuing the company at between $16-$30 billion, a source familiar with the matter said on Thursday, confirming an earlier Bloomberg story.

China’s Zhejiang Geely Holding Group, which bought Volvo Cars in 2010, has picked Citigroup, Goldman Sachs and Morgan Stanley for a listing, the source said, who asked not to be identified because the deliberations are confidential.

The potential listing could take place as soon as September this year, the source said, although the ultimate timing will depend on market conditions. A spokeswoman at Volvo Cars said an IPO is an alternative and the decision is up to the owner. She gave no other comments.

Spokespeople for Citigroup, Goldman Sachs and Morgan Stanley declined to comment. Geely was not immediately available for comment.

The source said the three investment banks at this stage were joint co-managers and that no lead bank had yet been appointed.

Volvo Cars had revenues of 210.9 billion crowns ($24.4 billion) in 2017 with an operating profit of 14.1 billion crowns. ($1 = 8.6415 Swedish crowns) (Reporting by Harry Brumpton in New York, writing by Olof Swahnberg in Stockholm, editing by Alexandra Hudson)

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