Chinese owner Geely IPOs Volvo

Released on 04.10. 2021

  • The Chinese car company Geely wants to list its Swedish car subsidiary Volvo Cars as expected in Stockholm. Photo: Nicolas Maeterlinck

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Volvo has been planning an IPO for a long time, but had to put it on hold in between. Now it should finally work.

Göteborg / Stockholm (dpa) – The Chinese car company Geely wants to bring its Swedish car subsidiary Volvo Cars to the stock exchange in Stockholm, as expected.

New shares should generate income of around 25 billion Swedish kronor (2.5 billion euros), as Volvo announced in Gothenburg on Monday. Geely also wants to place part of its shares. Volvo Cars is to be listed on the Nasdaq in Stockholm.

Volvo boss Hakan Samuelsson described the project as an important milestone and a new chapter for the car manufacturer. The Swedes want to use the money for industry upheaval and further growth. The first trading day should take place this year. Geely founder and owner Li Shufu (Eric Li) said his company wanted to remain the majority owner of Volvo. According to Volvo, other large shareholders will also remain on board.

Volvo has been planning an IPO for a long time, but had to put it on hold in between. A new attempt to bring the premium manufacturer onto the floor has been underway since May of this year. The company wants to publish details. In media reports there had been speculation so far about a possible valuation of around 17 billion US dollars (17, 2 billion euros).

The Chinese had Volvo Cars 2010 taken over by the US auto company Ford for $ 1.8 billion. The car manufacturer Volvo Cars has been separated from the Swedish commercial vehicle manufacturer Volvo AB for decades, in which Geely also has a stake and which is listed on the stock exchange. Li Shufu is also the largest single shareholder in the German Daimler Group with a stake of around 9.7 percent.

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