Another IPO, this time it concerns passenger car maker Volvo Cars. Not to be confused with the truck manufacturer, also called Volvo.
Volvo Cars is now fully owned by the Chinese automaker Geely. The company bought it in 2010 from the American Ford. Much longer ago, the maker of passenger cars and the manufacturer of trucks were one concern, with the name Volvo.
Further details on the IPO will be announced at the time of the prospectus release. It has not yet been announced when it will be released.
‘worth 17.7 billion euros’
It is already clear that Geely will remain the largest shareholder. Two Swedish large investors will maintain their total stake of 2.2 percent.
Geely is aiming for a total valuation of Volvo Cars of 20 billion dollars (17.6 billion euros), according to Reuters news agency, which says it is basing itself on sources familiar with the situation. It is one of the largest IPOs in Europe this year.
In total, Volvo wants to issue new shares worth 25 billion Swedish krona (2.5 billion euros). The proceeds will be used to finance further growth. Volvo also wants to increase the share of electric cars.
More cars and more electric
By 2030, Volvo only wants to make fully electric cars. As an interim step, it expects that in four years half of the cars it makes will be fully electric. It also wants to increase sales by more than half, to 1.2 million in 2025. Volvo also wants to sell half of its cars online in that year.
Three years ago, Geely also had plans to list part of Volvo’s shares. But that was then canceled due to the bad situation for auto stocks at the time.
Suffers from chip shortage
The plans for the show come on the same day it was announced that Volvo Cars could not get enough parts to produce its cars.
In September, sales fell by 30 percent compared to a year earlier, to more than 47,000 units. Several manufacturers, of cars, but also of other products, are struggling with a shortage of chips.
Last week it was already announced that Polestar, another car manufacturer, is going to be listed in the US. Polestar is still owned by Volvo Cars and therefore Geely.
Electric cars only
Polestar goes public in New York through a merger with a so-called Spac. Polestar should be worth 17 billion euros.
Polestar only makes electric cars. Last year it was only 10,000 units, but that should have increased to 290,000 by 2025. Polestar production now takes place at the factories of Volvo Cars and Geely.