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In addition, the company has decided on the starting price of its shares in the offering. It is set at the lower end of the previously indicated price fork: each share will be sold at the start of trading for 53 Swedish krona (€5.31). Thus, the company hopes to raise $2.3 billion during the IPO and its total capitalization could reach about $18 billion.
Previously, Volvo Cars expected to raise $2.85 billion and its market capitalization would then reach $25 billion.
Volvo Cars was bought by American Ford Motor in 1999. In 2010, Ford Motor, which found itself in a difficult situation during the global financial crisis, sold the Swedish manufacturer to China's Zhejiang Geely Holding Group, which owns the Geely Automobile concern. With the support of the Chinese holding company, the Swedish company entered new markets, expanded production and returned to profit.
The coronavirus pandemic caused the Swedish manufacturer to make a six-month loss. For the full year, Volvo Cars had revenues of $31 billion and sold 662,000 vehicles. Earlier, the Chinese holding was considering a merger between Geely Automobile and Volvo Cars, but this plan was rejected in February.
source: volvocars.com
Previously, Volvo Cars expected to raise $2.85 billion and its market capitalization would then reach $25 billion.
Volvo Cars was bought by American Ford Motor in 1999. In 2010, Ford Motor, which found itself in a difficult situation during the global financial crisis, sold the Swedish manufacturer to China's Zhejiang Geely Holding Group, which owns the Geely Automobile concern. With the support of the Chinese holding company, the Swedish company entered new markets, expanded production and returned to profit.
The coronavirus pandemic caused the Swedish manufacturer to make a six-month loss. For the full year, Volvo Cars had revenues of $31 billion and sold 662,000 vehicles. Earlier, the Chinese holding was considering a merger between Geely Automobile and Volvo Cars, but this plan was rejected in February.
source: volvocars.com
