Volvo Cars fixes share price for IPO at $6.20

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STOCKHOLM: Swedish car brand Volvo on Monday said that it has fixed the share price of SEK53 ($6.20) for its listing on the Stockholm Stock Exchange later this week.

The price is at the bottom end of the range that Volvo announced last week, which was between SEK53 and SEK68/share, ahead of its initial public offering.

In a statement on Monday, the carmaker also lowered the amount it plans to raise by going public from SEK25 billion ($2.9 billion) to SEK20 billion ($2.3 billion).

It said that its first day of trading will be on October 29, one day later than previously announced.

Volvo first said it plans to go public in early October, while noting that China’s Geely would remain the largest shareholder.

The Swedish automaker had been struggling until Geely acquired it from US giant Ford for $1.8 billion in 2010.

Volvo’s image and sales have dramatically improved since then, riding the wave of popularity of SUVs. The company plans to go all-electric by 2030.

Volvo Cars CEO Hakan Samuelsson said in the statement that “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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