For the second time this year, part of the Geely empire is being floated on a stock exchange.
Overnight Volvo confirmed it will go public via an initial public offering (IPO) on the Nasdaq Stockholm stock exchange.
The IPO is expected to raise 25 billion Swedish krona ($3.9 billion) in cash.
The share offering will be divided into two parts: one part is open to the general public of Sweden, Norway, Finland and Denmark, while the other section is open to institutional investors across the world.
According to the automaker, Geely will remain Volvo’s largest shareholder, although it didn’t specify how much of the Swedish automaker it will own after the float is completed.
Reports last month indicated Geely was working with investment banks on a listing for Volvo, and aiming for a valuation of around US$20 billion ($27 billion).
The listing on Nasdaq Stockholm will be for regular class B shares. It’s unclear whether there will also be class A shares with preferred voting rights issued at the same time or a later date.
“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,” Hakan Samuelsson, CEO of Volvo Cars, said in a prepared statement.
“This will position the company to deliver continuous growing volumes, revenues and profitability.”
At the beginning of this year, Volvo announced it will sell only electric vehicles by 2030, with all sales taking place online.
“Over the past decade, Volvo Cars has turned itself into one of the world’s fastest-growing carmakers. We will continue to support Volvo Cars as a majority shareholder in this ongoing global success story,” Eric Li, founder of Geely, said overnight.
Geely purchased Volvo Cars from Ford in 2010 as the Blue Oval dismantled its Premier Automotive Group to raise cash and stave off bankruptcy.
Today’s announcement follows on from news last week that Polestar — Volvo’s former performance arm and now a dedicated EV marque — will go public by merging with special purpose acquisition company (SPAC) on the Nasdaq exchange in the US.
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