Geely’s Volvo Cars goals to lift $2.9 bln in IPO

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STOCKHOLM/LONDON, Oct 4 (Reuters) – Geely-owned Volvo Cars plans to lift 25 billion Swedish crowns ($2.9 billion) by an preliminary public providing (IPO), the Swedish carmaker stated on Monday of what could be one among Europe’s greatest listings this yr.

Volvo stated it’s going to record on the Nasdaq Stockholm inventory change this yr and that Chinese proprietor Geely Holding (GEELY.UL) would stay its greatest shareholder.

In 2018 Volvo Cars and Geely, which additionally owns an 8.2% stake in Sweden’s Volvo Trucks (VOLVb.ST), postponed plans to drift shares within the Swedish carmaker, citing commerce tensions and a downturn in automotive shares.

“Volvo Cars believes that its unique structure and focused strategy makes it one of the fastest transformers in the global automotive industry, with mid-decade ambitions dedicated to electrification, sustainability and digitisation.” the Swedish firm stated in a press release.

Like various different carmakers, Volvo has dedicated to shifting its whole automotive vary to fully-electric fashions by 2030.

Volvo stated is concentrating on an working margin of between 8% and 10% by 2025. It can also be aiming for annual gross sales of 1.2 million automobiles, up 56% from the 770,000 it bought within the 12 months to June 20 this yr.

ELECTRIC PUSH

The carmaker stated it expects 50% of gross sales to be absolutely electrical automobiles by the center of the last decade and that fifty% of gross sales can be made on-line moderately than in dealerships.

Volvo Cars stated earlier on Monday that its gross sales in September fell 30% from a yr earlier, dented by the worldwide elements scarcity. learn extra

Sources advised Reuters final month that Geely was in superior discussions with banks to record the Swedish firm within the coming weeks, aiming for a valuation of about $20 billion. learn extra

Volvo Cars had beforehand stated it was contemplating a Stockholm itemizing within the second half of 2021. learn extra

A Volvo spokesperson on Monday stated that the corporate had no touch upon valuation or on how a lot of the enterprise could be bought within the IPO.

“There will be further information published in connection with the prospectus,” she stated.

Electric-car maker Polestar, which is owned by Geely and Volvo, final week stated it’s going to go public by merging with a U.S.-listed particular function acquisition firm (SPAC) backed by billionaire Alec Gores and funding financial institution Guggenheim Partners at an enterprise worth of $20 billion. learn extra

($1 = 8.7236 Swedish crowns)

Additional reporting by Anna Ringstrom
Editing by Niklas Pollard and David Goodman

A building of the Geely Auto Research Institute is seen in Ningbo, Zhejiang province, China August 4, 2017. REUTERS/Aly Song