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October 4, 2021updated 04 Dec 2021 10:12am

Volvo Cars announces IPO plan for Nasdaq Stockhom stock exchange

The delayed IPO will provide much needed capital for investment in advanced technologies.

By David Leggett

Geely-owned Volvo Cars has announced that it intends to launch an initial public offering and list on the Nasdaq Stockholm stock exchange.

Volvo said the proposed 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 potential partial sale of shares by Volvo Cars’ main shareholder. In addition, Volvo Cars’ current Swedish institutional shareholders AMF and Folksam intend to remain as shareholders following completion of the IPO.

As a listed company upon completion of the IPO, Volvo Cars will enable global institutional and retail investors to participate in the next phase of the company’s value creation. 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. Volvo Cars will thereby continue to benefit from cooperation within the Geely ecosystem, providing valuable scale and market synergies.

Håkan Samuelsson, CEO of Volvo Cars, says: “Today is an important milestone for our company with the announcement that we intend to list Volvo Cars on Nasdaq Stockholm. The proposed IPO marks a new chapter for Volvo Cars, and we invite Swedish and international investors to participate in our future growth and value-creation. The decision to proceed with an IPO will help strengthen our brand and accelerate our transformation strategy – towards full electrification, direct consumer relationships and the next level of safety. This will position the company to deliver continuous growing volumes, revenues and profitability.”

The institutional investors AMF and Folksam currently hold 2.2 per cent 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.

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