Volvo’s IPO Valuation Isn’t Built for Safety

Timing is everything in investing, and China’s largest homegrown carmaker has decided that this is the moment to take Volvo Car AB public, at a potentially eye-popping valuation. Zhejiang Geely Holding Group Co. has discussed valuing the business at somewhere between $16 billion and $30 billion and is looking at a dual listing in Hong Kong and Sweden, Bloomberg News reported last week. At first glance, Zhejiang Geely may want to monetize its holding in the Swedish automaker, especially in a world where companies need money to meet consumers’ incessant demand for new models. The future of the car market looks uncertain and R&D investment will be forced higher.