Volvo Cars this Monday announced its intention to conduct an initial public offering (IPO), culminating in the integration of the Nasdaq index in Stockholm, Sweden. The IPO of the company, which is controlled by the Chinese Geely, was already expected by the market, as the company itself has already announced its intentions to continue such an operation.
The company said in a statement that this is a way to “support the transformation of the company and its continued growth.” According to the information disclosed by the company, this IPO proposal should consist of “issuing new shares of Volvo Cars” with the aim of “reaching approximately 25 billion Swedish kronor”, which is equivalent to 2.5 billion euros.
In accordance with Financial Times newspaperAccording to sources close to the topic, as a result of this operation, the value of the company could be from $ 20 billion to $ 30 billion.
“Today is a milestone for our company with the announcement of Volvo Cars’ intention to integrate Nasdaq Stockholm,” said Volvo Cars CEO Håkan Samuelsson in a statement. “The IPO proposal marks a new chapter for Volvo Cars and we invite Swedish and international investors to participate in our future growth and value creation.”
According to the official, “the decision to hold an IPO will help strengthen the brand and accelerate the transformation strategy,” citing total electrification as an example.
Geely, which acquired Volvo Cars in 2010, will remain the company’s largest shareholder following the completion of its IPO. AMF and Folksam, which own 2.2% of Volvo Cars, intend to continue to participate as shareholders of the company following their listing on the stock exchange.
“We support the transformation and growth of this iconic Swedish brand during an unprecedented period in our industry. Over the past decade, Volvo Cars has become one of the fastest growing car manufacturers in the world. We will continue to support Volvo Cars as a majority shareholder. “In this never-ending story of global success,” says Eric Lee, “chairman” of the Volvo Cars board of directors, who is also the chairman of China’s Geely.
This announcement by Volvo Cars came about a week after Polestar. Volvo electric vehicle brand announces its intention to go public. According to Bloomberg, the SPAC deal values the company (including debt) at about $ 20 billion (€ 17 billion at current exchange rates). Part of the amount (approximately 857 million euros) will be used to launch three new Polestar tram models.
China’s Geely has already tried to bring Volvo Cars to the stock market in 2018. However, these plans were abandoned due to the trade war between the United States and China.
