Geely-owned Volvo Steers Towards US$23bn Valuation

"); jQuery("#212 h3").html("

Related News Programmes

"); });

2021-10-19 HKT 00:36

Share this story

facebook

  • Volvo cars on a forecourt in London. The Swedish marque has revived its reputation since a takeover by China's Geely. File image: Shutterstock

    Volvo cars on a forecourt in London. The Swedish marque has revived its reputation since a takeover by China's Geely. File image: Shutterstock

Swedish car brand Volvo said Monday it was planning its Stockholm stock exchange debut on October 28, targeting a market value of up to US$23.1 billion.

The Swedish carmaker first announced its plans to go public in early October, while noting that China's Geely would remain the largest shareholder.

The expected share price would be between 53 and 68 kronor per share, "corresponding to a market capitalisation of Volvo Cars of 163-200 billion kronor after completion," the company said in a statement.

Shares available for public trading were expected to account for between 19.5 and 24 percent of the company's total shares.

Volvo added that it expected to raise around 25 billion kronor before transaction costs from the newly issued shares.

The final IPO price is to be announced on October 27, as is a separate IPO from electric car manufacturer Polestar, a joint subsidiary of Volvo Cars and Geely.

The announcement marks another milestone for the automaker, which had been struggling until Geely acquired it from US giant Ford for US$1.8 billion in 2010.

Volvo's image and sales have dramatically improved since then, riding the wave of popularity of SUVs. The company plans to go all-electric by 2030. (AFP)

RECENT NEWS

US Stocks Rise On Hopes Of Pause In Rate Increases

Wall Street stocks finished solidly higher on Thursday, reflecting better sentiment on the US economy and a consensus vi... Read more

China's Financial Risks 'controllable': Regulators

The head of the National Financial Regulatory Administration on Thursday told a high-profile forum in Shanghai that the ... Read more

Banks Cut Yuan Deposit Rates, Could Boost Consumption

China's biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pre... Read more

Cheese And Wine Put EU, Australia Deal In Peril

Australia on Thursday threatened to walk away from a blockbuster free trade deal with the European Union unless its prod... Read more

US Stocks End Mixed As Tech Shares Are Sold Off

Gains by industrial companies lifted the Dow on Wednesday, while weakness among technology shares pushed the Nasdaq deci... Read more

Amazon 'plans Prime Video Streaming Service With Ads'

Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Jou... Read more