Volvo Cars has announced its intention to launch an Initial Public Offering (IPO) and to list its class B shares on Nasdaq Stockholm. The IPO could value the group at more than USD 30bn. The proposed IPO is expected to consist of the issuance of new shares by Volvo Cars to raise gross proceeds of approximately SEK 25 billion and a potential partial sale of shares by Volvo Cars’ main shareholder. In addition, Volvo Cars’ current Swedish institutional shareholders AMF and Folksam intend to remain as shareholders following completion of the IPO.
The institutional investors AMF and Folksam currently hold 2.2 per cent of the shares in Volvo Cars through preference shares. Following completion of the IPO, AMF and Folksam intend to remain as shareholders in Volvo Cars through listed shares.
As a listed company upon completion of the IPO, Volvo Cars will enable global institutional and retail investors to participate in the next phase of the company’s value creation. Geely Sweden – a wholly-owned subsidiary of Zhejiang Geely Holding which acquired Volvo Cars in 2010 – intends to remain the company’s largest shareholder.
Volvo Cars reported record growth in unit sales and revenues in the first half of 2021. The company is headquartered in Gothenburg, Sweden, since it was founded in 1927.