Volvo Cars confirms IPO in Sweden
Volvo Cars, which is owned by Chinese Geely, intends to be listed on the stock exchange again after 20 years with a listing in Sweden later this month.
Its shares will begin trading on the Nasdaq Stockholm Stock Exchange on October 28.
The company said it will offer shares for SEK 53 to SEK 68 each in a move that is expected to raise almost $ 3 billion and value the carmaker at up to $ 2 billion.
The IPO will be Europe’s largest since January, according to data compiled by Bloomberg.
Geely, which bought Volvo Cars in 2010 from Ford (F), had previously indicated to banks and investors that it was preparing an IPO. it will continue as the main owner of the swedish company.
Volvo’s CEO HÃ¥kan Samuelsson said that the company was looking for small private investors in Sweden to take the opportunity to buy shares in Volvo Cars.
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“I think we have a very strong interest, especially from the Nordic investors,” he said at a press conference.
The carmaker has ambitious goals of only selling entire electric cars by 2030. It hopes to use funds from the IPO to increase its car manufacturing capacity so that it can almost double annual sales to more than 1.2 million vehicles.
There are also plans to build a battery plant in Europe.
– We have a very clear strategy to be an electricity company in 2030 and we have been on that journey for a few years now, says Samuelsson.
“With this, of course, we can secure that transformation, because of course it is not free.”
In 2018, Volvo postponed IPOs due to trading tensions and a decline in vehicle inventory. Investors are said to be shocked by its valuation expectations of as much as $ 30 billion.
Meanwhile, electric car maker Polestar, which is owned by Geely and Volvo, said last month that it would be listed by merging with a US-listed special-purpose acquisition company (SPAC) at a company value of $ 20 billion.
Look at: What is a SPAC?