According to foreign media reports, on October 18th, Volvo Cars, a subsidiary of Geely Holding, stated that the company’s initial public offering (IPO) price range was 53 to 68 SEK per share (US$6.1 to 7.9), and the company’s valuation was approximately Between 163 billion and 200 billion Swedish kronor (18.8 billion to 23.1 billion US dollars), stocks will begin trading on October 28. This may be one of the largest IPOs in Europe this year.

　　(Image source: Volvo Cars)

　　Volvo Car CEO Hakan Samuelsson said at a press conference after the announcement of the prospectus: "I think investors have a very strong interest in us, especially investors from Northern Europe."

　　NordLB analyst Frank Schwope said that his initial assessment of the valuation is more conservative. "I think that whether they can achieve this target valuation will depend on Polestar, not only on their investment in Polestar, but also on how they cooperate. Polestar is a very promising company. Company, but you are betting on its future."

　　In September, Geely and Volvo’s electric car manufacturer Polestar stated that it would merge with Gores Guggenheim, a special purpose acquisition company (SPAC) in the United States, at a valuation of US$20 billion. Gores Guggenheim is backed by billionaire Alec Gores and investment bank Guggenheim Partners.

　　In the same month, a person familiar with the matter disclosed that Geely was having in-depth discussions with the bank on listing matters in the next few weeks, with a target valuation of approximately US$20 billion.

　　In October, Volvo Cars stated that the company plans to raise US$2.9 billion through an IPO and list it on the Nasdaq-Stockholm Stock Exchange. Over the years, Volvo has been consolidating its position in the high-end market with the support of Geely Holding Group.

　　Volvo reiterated that it expects to raise approximately 25 billion kronor (2.9 billion US dollars, net of transaction costs) for its IPO. Volvo Finance Director Bjorn Annwall said, "This will ensure that we can continue our existing plans."

　　Volvo said that the transaction includes the expected conversion of AMF and Folksam investors, which is expected to bring its free float between 19.5% and 24.0%.

　　Volvo said that operating profit in the first September of this year rose from 3.6 billion kronor in the same period last year to 16.6 billion kronor. The company had previously stated that after its listing, its parent company Geely will remain its largest shareholder.

　　In 2018, Volvo Cars postponed its plans to go public due to trade tensions and a downturn in auto stocks. The initial public offering (IPO) market has been hit hard by uncontrolled inflation and rising interest rates, and a large number of new shares in the United States and Europe have been cancelled or postponed.

　　This article is reproduced from Gasgoo.com