Automotive company Volvo Cars reduce its IPO price
By Jenny McCall
09:21, 25 October 2021
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.
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.
Read more: Car sector: How bumpy will the road to recovery be?
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