HELSINKI -The Chinese-controlled Swedish car manufacturer Volvo Cars will return as a listed company after a break of more than two decades after an IPO and IPO in Sweden later this month.
Gothenburg, Sweden-based Volvo Cars said in a statement Monday that the company, which is owned by China’s Zhejiang Geely Holding Group Co., would offer shares for SEK 53 to SEK 68 each in a move that is expected to raise $ 2.9 billion, valued the carmaker of up to $ 23 billion.
The Chinese company bought Volvo Cars in 2010 from Ford Motor Co., which had acquired the Swedish company in 1999.
Geely, which earlier this month had announced to banks and investors that they were preparing a Volvo Cars IPO, would continue as the Swedish company’s main owner after the listing, the company said.
Volvo Cars has an ambitious plan to sell full electric cars only in 2030. It plans to use the funds from the offer to add its car manufacturing capacity to reach the goal of selling more than 1.2 million vehicles annually and to build a battery plant in Europe.
Volvo Car’s shares would start trading on the Nasdaq Stockholm Stock Exchange on October 28.
CEO Hakan Samuelsson said that the company was especially looking for small private investors in Sweden to take the opportunity to buy shares in Volvo Cars, which manufactures vehicles under the iconic Volvo brand.
Copyright 2021 Associated Press. All rights reserved. This material may not be published, transmitted, rewritten or distributed without permission.