Volvo Cars, a company owned by Chinese group Geely, has announced plans to go public in Stockholm by the end of the year. If the information is confirmed, it would be one of the biggest IPOs of the year on the European continent.
VOLVO CARS COULD ENTER THE STOCK EXCHANGE
Last Monday, Volvo Cars announced its intention to launch its IPO on Nasdaq in Stockholm. Three years ago, the Geely group gave up on going public with the Swedish company. The cause: trade tensions and the decline in auto values.
In a press release, the automaker said that “the proposed IPO should consist of the issuance of new shares by Volvo Cars to raise gross proceeds of around SEK 25 billion and a potential partial sale of ‘shares by the major shareholder of Volvo Cars‘.
In addition, the Swedish firm said that its listing should take place by the end of the year and that Geely will remain its main shareholder.
20 BILLION DOLLARS!
Last September, three sources told Reuters newspaper that Chinese group Geely was in talks with banking institutions to IPO Volvo Cars in the coming weeks. They also said the holding company was aiming for a valuation of around $ 20 billion.
“The decision to proceed with an IPO will help strengthen our brand and accelerate our transformation strategy (…),” said Hakan Samuelsson, CEO of the Swedish car manufacturer. “This will enable the company to ensure continued growth in volumes, revenues, and profitability,” he adds.
Recall that Volvo Cars achieved a turnover of around 13.9 billion euros in the first half of the current year, with a profit of around 950 million euros. At the same time, the company sold more than 380,000 cars.