Volvo Cars Plans IPO To Raise Apprx. $2.9 Bln

Volvo Cars, owned by Zhejiang Geely Holding (ZGH), a Chinese a multinational automotive company, on Monday, said it is set to launch an Initial Public Offering and to list its class B shares on Nasdaq Stockholm. Volvo also aims to raise around SEK25 billion or about $2.87 billion from the proposed IPO.

The company expects the IPO to help it transform to full electrification.

The comprises new shares by Volvo Cars and a potential partial sale of shares by its main shareholder. In addition, Volvo Cars' current Swedish institutional shareholders AMF and Folksam intend to remain as shareholders following completion of the IPO, the Swedish automotive firm said.

"To support the company's transformation and its continued growth, Volvo Cars' Board of Directors and its main shareholder, Geely Sweden Holdings AB (Geely Sweden) have agreed to apply for a listing of the company's shares on Nasdaq Stockholm and thereby gain access to the Swedish and international capital markets and diversify Volvo Cars ownership base," the company added.

Geely Sweden- a wholly-owned subsidiary of Zhejiang Geely Holding Co Ltd. which acquired Volvo Cars in 2010 - intends to remain the company's largest shareholder.

The institutional investors AMF and Folksam currently hold 2.2 percent of the shares in Volvo Cars through preference shares. Following completion of the IPO, AMF and Folksam intend to remain as shareholders in Volvo Cars through listed shares.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT