Volvo has confirmed plans for an initial public offering (IPO) on Nasdaq Stockholm.
The Swedish car manufacturer hopes to raise 25 billion krona ($2.9 billion) through the listing and noted that Geely will remain its largest shareholder. The IPO comes as part of Volvo’s push to transform itself into a leader in the electric vehicle space and also follows on from confirmation that Polestar will go public in the U.S. through a merger with a special purpose acquisition company.
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“Today is an important milestone for our company with the announcement that we intend to list Volvo Cars on Nasdaq Stockholm,” Volvo Cars chief executive Håkan Samuelsson said in a statement. “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.”
Volvo’s IPO in Sweden will be the country’s largest since local telecommunications company Telia Co AB went public in 2000 and raised $8.9 billion.
With new funds, Volvo wants to boost sales to 1.2 million vehicles annually by 2025, roughly double what it sold in 2020.
“We have supported the transformation and growth of this iconic Swedish brand during a period of unprecedented change in our industry,” added chairperson of Volvo Cars’ board of directors Eric Li. “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.”
