Geely’s Volvo Cars sets IPO price range, seeking up to $23 billion valuation

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A employees member stands in entrance of Volvo XC60 and XC90 SUVs displayed at its sales space throughout a media day for the Auto Shanghai present in Shanghai, China April 20, 2021. REUTERS/Aly Music

STOCKHOLM, Oct 18 (Reuters) – Geely-owned Volvo Vehicles stated on Monday its preliminary public providing can be priced inside a variety of 53 to 68 Swedish crowns per share, valuing the automaker at as much as $23 billion in what’s more likely to be one Europe’s largest listings this yr.

Volvo Vehicles, which has spent years underneath the Geely Holding (GEELY.UL) umbrella strengthening its foothold within the premium market, stated this month it deliberate to boost $2.9 billion by means of an IPO and listing its shares on the Nasdaq Stockholm inventory alternate.

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

The carmaker stated in a press release its IPO would worth the corporate, maker of fashions such because the high-end XC-90 SUV, at between 163 billion and 200 billion crowns and that shares would start buying and selling on Oct. 28.

“I feel we have now a really sturdy curiosity particularly from the Nordic buyers,” Volvo Chief Govt Hakan Samuelsson instructed a information convention referred to as at brief discover because the prospectus for the providing was unveiled.

Volvo repeated that it anticipated the difficulty of latest shares to supply the carmaker with gross proceeds of about 25 billion crowns earlier than transaction prices. “It will safe that we are able to proceed with the plan that we have now,” finance chief Bjorn Annwall stated.

The transaction, together with anticipated transformed investments by buyers AMF and Folksam, was seen leading to a free float of about 19.5% to 24.0%, Volvo stated.

The Gothenburg-based firm had beforehand stated that proprietor Geely would stay its largest shareholder after the itemizing.

Electrical-car maker Polestar, owned by Geely and Volvo, final month stated it’ll go public by merging with a U.S.-listed particular goal acquisition firm (SPAC) backed by billionaire Alec Gores and funding financial institution Guggenheim Companions at an enterprise worth of $20 billion.

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

($1 = 8.6545 Swedish crowns)

Writing by Niklas Pollard; Modifying by Simon Johnson and Steve Orlofsky


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