Volvo Cars confirms that it will undergo an initial public offering as the company returns to the Nasdaq Stockholm Stock Exchange after 2 decades of being owned by other automakers.
China’s Zhejiang Geely Holding Group Co will offer shares at 53 to 68 Swedish kronor each ($6.30 to $8.07) in a bid to raise around $2.9B. The IPO would value the Swedish car manufacturer at up to $23B.
Geely purchased Volvo from Ford Motor Co. (F -1.1%) in 2010. Ford had owned the company since 1999. Geely will remain Volvo's primary owner following the listing.
Volvo will use the funds to finance the construction of a European battery plant alongside its plan to sell only electric vehicles by 2030. Shares of the company will begin trading Oct. 28.