Volvo Cars is planning an IPO to raise 25 billion Swedish crowns – around $2.9 billion.
Volvo Cars, owned by China’s Geely, is set to list on the Nasdaq Stockholm stock exchange though Geely would still remain the largest shareholder.
“Volvo Cars believes that its unique structure and focused strategy makes it one of the fastest transformers in the global automotive industry, with mid-decade ambitions dedicated to electrification, sustainability and digitisation,” reads a statement from Volvo Cars.
Volvo Cars has said the company is targeting an operating margin of between 8% and 10% by 2025, whilst still shifting its entire range to fully electric models by 2030.
Volvo is also planning on half of its sales will be electric by the middle of the decade. Perhaps more importantly, the company is also hoping that half of its sales will be made online, rather than in dealerships, by 2025.
The company is also aiming for annual sales of 1.2 million cars, up from 56% from the 770,000 it sold in the year up to June this year.
Fortunately, the company has reported 17.6% global sales growth in the first nine months of this year – impressive considering the global economic downturn and chip shortage. However, last month, the company only managed to shift 47,223 models, down 30% from the same time last year.
However, Volvo Cars and Geely have remained tight-lipped about any prospective deal with neither company willing to comment on the valuation or how much of the business would be sold.
“There will be further information published in connection with the prospectus,” the spokesperson told Reuters.
Volvo Cars also owns an 8.2% stake in Volvo Trucks and it’s unclear how the deal would affect the trucking business. Geely and Volvo also own luxury electric car manufacturer Polestar which announced last week that it was to go public via a merger with a US-listed special purpose acquisition company.
Keyword: Volvo Cars Expected to List on Stockholm Nasdaq with $2.9 Billion Valuation