Volvo Cars will list its shares next week on an offer that can value Chinese-owned luxury automakers for up to $ 23 billion.
Swedish automakers are set to open trading on October 28 and expect to raise up to 34 billion SKr ($ 3.9 billion).
Volvo then has a 17-21% free float Offering However, it will continue to be managed by Chinese automaker Zhejiang Geely, which currently owns 98% of the shares and is set to hold 97% of the voting rights after the offer.
Volvo CEO Hakan Samuelsson said Gosenberg-based automakers will fund the promotion of selling most of their IPO revenue by the end of the decade, only electric vehicles. Used and said some will increase manufacturing capacity and car sales capacity. Directly to the customer.
“As a publicly traded company, our ambitions need to combine being the fastest transformer in the industry with creating value for our shareholders,” he added.
Volvo’s Turnaround, which was sold by Ford Motor Company to Geely for $ 1.8 billion in 2010, is a big success story for Chinese owners as the deal was one of the largest overseas acquisitions in the country.
However Volvo list It happens as tensions rise between China and the United States, and parts of Europe. The list before 2018 is Shelving Geely believed it was worth it because of the fear that the trade war between China and the United States could undermine its ability to reach a $ 30 billion valuation.
Volvo’s IPO is set to sell for SKr53-SKr68 per share, giving automakers a market capitalization of SKr163bn-SKr2,000bn ($ 190bn- $ 230bn). Polestar, a deficit electric vehicle brand half-owned by Volvo and sold only 10,000 units last year, is set to go public in 2022 through a special acquisition company with a valuation of $ 20 billion.
People near the car maker have suggested that they are carefully pricing their products to secure an upturn for new investors. Volvo said it has secured support from several Scandinavian pension funds and asset managers as a cornerstone investor in the offer of about 6.4 billion SKr. Current minority shareholders AMF and Folksam will convert preferred shares to regular shares and donate 5.3 billion SKr to the IPO.
Volvo has long lags behind major luxury automakers such as Audi, BMW and Mercedes in terms of sales and profitability. The Swedish group sold about 740,000 cars in the year to the end of September. This is less than half of Germany’s rivals. But it aims to sell 1.2 million by the middle of the last decade.
Important to its success is the conversion to the fastest electric vehicle of all traditional manufacturers.Volvo Presentation In June, it will build a battery gigafactory with Swedish startup Northvolt to produce enough electric packs to power 500,000 vehicles annually from 2026.
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