Swedish carmaker Volvo is making progress towards an initial public offering of shares before the end of 2021, confirming previous reports.
Executives from the automaker told Reuters this week that it plans to capitalize on investors who are eager to buy shares in manufacturers going big on electric following its announcement that it would become an EV-only company by 2030.
“We are looking at the possibility of doing an IPO before the end of the year,” Hakan Samuelsson said during an interview, adding that the company would list its shares on the Nasdaq Stockholm exchange.
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The move is an interesting development in Volvo’s relationship with its current owner, China’s Geely. The companies have become strong technological partners recently with many brands in Geely’s empire using Volvo’s platform.
Volvo said that the companies will continue to share vehicle architectures and internal combustion powertrains, as well as other components, but will do it at “an arm’s length distance.” The companies will behave more like independent companies, according to Samuelsson.
The company recently made a flurry of announcements about its upcoming generation of technologically advanced vehicles. Volvo plans to unveil a new all-electric flagship SUV next year that will come standard with advanced sensors and the potential for autonomous technology.
It has also invested in the vehicle subscription model. Recurring revenues, says Samuelsson, will come to define the whole vehicle business.
