CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Automotive company Volvo Cars reduce its IPO price

By Jenny McCall

09:21, 25 October 2021

Volvo logo on a Volvo car at a Volvo car dealer in Germany
Volvo will now set its listing at SEK 53 per share – Photo: Shutterstock.

Volvo Cars, which is owned by the Chinese automaker Geely with headquarters in Sweden, has reported on Monday that it will reduce the size of its initial public offering (IPO).

The car company previously said its shares would be priced within a range of SEK53 to SEK68 (£4.48 to £5.75) per share, however the group has now cut this price and will set its listing at SEK53 per share, this is the lower end of its previously announced range.

Production issues

The car industry has undergone a turbulent time of late, with a semiconductor shortage and a pandemic which closed all car showrooms, production disruptions are high due to supply chain issues.

Håkan Samuelsson, CEO of Volvo Cars, says: “With the amended structure, we look forward to listing on Nasdaq Stockholm on Friday, which is a major milestone for  Volvo Cars. The proceeds raised from the IPO together with our strong balance sheet will secure the funding of our fastest transformer strategy and the delivery of our mid-decade ambitions.”

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“We are very pleased with the strong support we have received from long-term institutional investors, and I would also highlight the very high level of demand from retail  investors. For all our shareholders, we will work hard to execute our business plan and create further value as a listed company.”

Volvo Cars will start trading on Nasdaq Stockholm on 29 October 2021, this is also one day later than previously indicated, to accommodate the extended application  period and withdrawal rights.

Geely Automobile Holdings LTD stock price was up 0.94% in morning trading today.


174.31 Price
+0.210% 1D Chg, %
Long position overnight fee 0.0085%
Short position overnight fee -0.0168%
Overnight fee time 21:00 (UTC)
Spread 0.090


0.66 Price
+0.480% 1D Chg, %
Long position overnight fee -0.0076%
Short position overnight fee -0.0006%
Overnight fee time 21:00 (UTC)
Spread 0.00050


1.07 Price
-0.510% 1D Chg, %
Long position overnight fee -0.0096%
Short position overnight fee 0.0014%
Overnight fee time 21:00 (UTC)
Spread 0.00018


1.25 Price
-0.650% 1D Chg, %
Long position overnight fee -0.0061%
Short position overnight fee -0.0021%
Overnight fee time 21:00 (UTC)
Spread 0.00110

Read more: Car sector: How bumpy will the road to recovery be?

The difference between stocks and CFDs

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you.

However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

Markets in this article

Geely Automobile
9.55 USD
0.5 +5.590%
Geely Automobile
9.55 USD
0.5 +5.590%
Geely Automobile
9.55 USD
0.5 +5.590%

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