The car manufacturer Volvo has postponed its IPO on Nasdaq Stockholm due to declining investor confidence.
The company’s IPO will be postponed to Friday, according to a statement issued today stating that the company would reduce its offering. The shares will be sold at a price of SEK 53, the bottom of the proposed range, and the company says it hopes to raise SEK 20 billion (£ 1.7 billion) from the IPO, a decrease from initial expectations of SEK 25 billion.
Håkan Samuelsson, CEO of Volvo Cars, said: “with the changed structure, we look forward to listing on Nasdaq Stockholm on Friday, which is a major milestone for Volvo Cars.
“The income from the listing together with our strong balance sheet will secure the financing of our fastest transformer strategy and the delivery of our ambitions from the middle of the decade,” added Samuelsson.
The company noted strong support from long-term institutional investors with indicated investments, anchor investor support and previously announced cornerstone commitments totaling SEK 14.1 billion.
Despite this, Volvo’s main owner, Geely Sweden Holdings AB, has decided not to exercise the size option for the IPO and instead the offer has been reduced.
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