Volvo Cars, the Swedish auto maker owned by China’s Zhejiang Geely Holding Group, on Monday set the price for its initial public offering at the low end of its target range, highlighting investors’ unwillingness to lend traditional car makers the valuations enjoyed by younger electric-vehicle companies.
Volvo said it has set the price of its shares at 53 Swedish kronor each, equivalent to $6.18, the bottom of its target range of up to 68 kronor. The offering values Volvo at just over $18 billion, shy of the $23 billion valuation that the company had hoped to achieve and the $25 billion that analysts had floated as possible.
