The Swedish carmaker Volvo has announced its IPO and is aiming to raise $2.9 billion. As per reports, this will be the largest IPO in Europe since January 2021. The overall valuation of the company will come up to $23 billion. The funds will be used for the development of future electric car projects. The IPO is expected to further raise Volvo’s production capacity to roughly double of what it is now. The brand is eyeing to sell over 1.2 million vehicles annually.
Talking of the expected price of the share, it will be in the range of 53 and 68 Kronor per unit. However, only 19.5 to 24 per cent of total shares will be available for public trading. The final IPO price will be announced on October 27. Also, Volvo’s EV arm – Polestar, a JV of Geely and Volvo cars, has also revealed the plan to go public via a blank-check merger in New York. Taking the valuation to around $20 billion with Volvo eyeing a 50 per cent stake
Hakan Samuelsson, CEO at Volvo Cars, quoted, “We have a very clear strategy to be an electric company in 2030 and we’ve been on that journey for some years now. With this, of course, we can secure that transformation, because of course, it’s not free of charge.”
The brand earlier revealed its future plan of going fully electric by 2030 with a prime focus on SUVs, considering their high demand. Also, the carmaker is aiming to produce cars with a range of roughly 1,000 km on a full charge. Currently, owned by China’s Geely Group, Volvo is preparing to set up a battery manufacturing unit in Europe with a production capacity of 50 gWh. Yes! It is higher than Tesla’s Gigafactory in Nevada, which has a capacity of 35 gWh.
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