On October 4th, 2021, Volvo Cars announced that it would be going public through an initial public offering (IPO), listing its shares on Nasdaq Stockholm. Shares of Volvo Cars will start trading on October 29th, 2021, and the IPO is set to be the largest in Europe since January 2021.
Keep reading to find out more about Volvo Cars and its upcoming market debut.
About Volvo Cars
Volvo Cars is a global company involved that designs, manufactures and supplies automobiles. Its roots date back to 1927 when the first Volvo car hit the roads of Gothenburg, Sweden. Volvo Cars was a part of AB Volvo until 1999 when the Ford Motor Company bought it. In 2010, Zhejiang Geely Holding (Geely Holding) of China acquired Volvo Cars and has owned it since.
Volvo Cars’ company structure comprises several brands, such as Volvo Cars and software company Zenseact. It also has relatively large stakes in several other brands. Volvo Cars owns 50% of electric car company Polestar, backed by Leonardo DiCaprio, and 30% of Chinese car brand LYNK & CO.
About Volvo Cars’ IPO
As mentioned, shares of Volvo Cars will start trading on Nasdaq Stockholm on October 29th, 2021. According to Volvo Cars’ press release on the matter, the company intends to use the funds to support its plan to only sell fully electric cars by 2030 and to increase its capacity in an effort to nearly double its annual sales to 1.2 million cars by 2025.
Volvo Cars initially set out to raise 25 billion kronor ($2.9 billion), but on October 25th, 2021, the company reduced its offering by a fifth and now will raise around 20 billion kronor ($2.3 billion). It priced its shares at the bottom end of its initial range at 53 kronor a share, giving it a value of just over $18 billion.
>Volvo Cars has had intentions to go public for quite some time. It initially attempted to list its shares in 2018 but called it off, citing fears of a trade war between the US, Europe and China would hurt its valuation.
It also waited for Polestar to announce that it would go public by merging with Gores Guggenheim, a special-purpose acquisition company (SPAC). The shares will trade under the Polestar name on the Nasdaq. At the time of writing, it has not been announced when Polestar will start trading, however, the deal implies an enterprise value of $20 billion.
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Sources: Volvo Cars, Bloomberg, Reuters