Volvo Cars is brought to the stock exchange in Stockholm. This should raise an amount of 25 billion Swedish krona, equivalent to €2.5 billion.
The IPO is due later this year and could become one of the largest in Europe this year. The Chinese parent company Geely will remain a major shareholder after that step. Geely bought Volvo Cars in 2010 from the American car group Ford Motor Company for approximately €1.4 billion.
There has been speculation for some time that Volvo Cars was going to make a move to the stock market. Volvo CEO Hakan Samuelsson stated last summer that an IPO before the end of 2021 was the goal. That worked. Last month it was announced that sister brand Polestar will do an IPO in New York via a merger with an empty stock shell. A so-called SPAC. In addition, a price tag on Polestar of converted €17 billion.
Volvo wants to use the proceeds of the share sale for investments in electric cars. The brand aims to have a fully electric range by 2030.
Pictured: Volvo Recharge Concept.
– Thanks for information from Autoweek.nl