Volvo aims to launch an IPO to fund electric cars development

Volvo is one of the fastest-growing automobile companies across the globe, both in terms of revenue and sales. The premium carmaker has recently declared to launch an IPO (Initial Public Offering). 

The IPO is expected to generate around 25 billion krona (SGD 5.8 billion). With that, the brand aims to electrify its lineup completely. The brand’s sales and reputation have seen a substantial rise due to the increase in the popularity of the SUV segment. 

The carmaker has also announced to list its shares on Nasdaq Stockholm so that the shareholders get the chance to invest in the premium automobile firms. The latter will also help in transforming the company and also to diversify the brand’s ownership base. 

“We have supported the transformation and growth of this iconic Swedish brand during a period of unprecedented change in our industry. Over the past decade, Volvo Cars has turned itself into one of the world's fastest-growing carmakers. We will continue to support Volvo Cars as a majority shareholder in this ongoing global success story,” said Eric Li, Chairperson of Volvo Cars. 

The CEO of Volvo Cars, Hakan Samuelsson said that they have created a vital milestone by listing its shares and inviting international and Swedish investors to participate in the brand’s value creation and future growth. 

According to him, the resolution to move ahead with IPO will not only help the brand in achieving full electrification but, at the same time, will aid in improving direct customer relationships. The Folksam and AMF are currently holding 2.2 percent of the shares, and they plan to remain shareholders via listed shares of Volvo cars. 

As we know that most of the popular brands have declared their plans to offer electric vehicles due to the strict pollution rules in various countries. With all the sales to be conducted online, Volvo cars aim to electrify its lineup by 2030 completely. 

Also read: Volvo Cars ditching leather upholstery in support of animal welfare