Wednesday, October 27, 2021

Volvo Cars IPO planned for end of 2021

The Chinese car company Geely wants to list its Swedish passenger car subsidiary Volvo Cars on the Stockholm stock exchange before the end of this year. Geely’s Volvo Cars aims to raise $2.9 bln in IPO.

New shares are expected to raise gross proceeds of around 25 billion Swedish kronor ($2.9 billion ). Geely wants to remain the largest shareholder.

It is still only a declaration of intent and thus not yet a binding decision. As of now there is no precise timetable or even procedure for the IPO in Stockholm.

Volvo Cars’ investor communication states that the planned IPO “is expected to consist of the issuance of new shares by Volvo Cars to raise gross proceeds of approximately SEK 25 billion and a possible partial sale of shares by Volvo Cars’ major shareholder”.

Geely intends to remain the main shareholder, and current Swedish institutional shareholders AMF and Folksam also intend to remain invested in the company, according to Volvo. Currently, AMF and Folksam hold 2.2% of the shares.

The IPO will now serve to finance this transformation towards electrification, sustainability and digitalisation – via access to Swedish and international capital markets to diversify Volvo Cars’ ownership base.

“As a listed company, Volvo Cars will enable global institutional and retail investors to participate in the next phase of the company’s value creation once the IPO is completed,” Volvo writes in the statement.

“We have supported the transformation and growth of this legendary Swedish brand at a time of unprecedented change in our industry,” said Eric Li, Chairman of the Board of Directors of Volvo Cars. “We will continue to support Volvo Cars as a majority shareholder in this ongoing global success story.”

Håkan Samuelsson, CEO of Volvo Cars, added in the release, “The decision to go public will help strengthen our brand and accelerate our transformation strategy – towards full electrification, direct customer relationships and the next level of safety. This will enable the company to deliver continuously growing volumes, revenues and profitability.”

On models, Samuelsson announced that they will also offer an electric car below the XC40. “Premium cars can clearly also be smaller cars. And electric cars will basically be a bit smaller,” the CEO said.

See also  Volvo increases it's stake in Polestar
Leannehttps://wegoelectric.net
Hi I'm Leanne. I'm a big fan of electric cars (drive a Model 3 myself) and support the movement to go electric! I hope you enjoy my Articles here on the website.
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