"We've been talking about going public for years, and now it's time for us to really want to transform." Volvo Car Group President and CEO Hanken Samuelson once said so.
On October 29, Volvo Cars announced that it was officially listed on the Stockholm Stock Exchange in Sweden (part of NASDAQ) under the symbol VOLCAR B and issued Class B common shares at SEK 53 per share. Unexpectedly, at the close of trading on the 29th, Volvo Cars' stock price has risen by 23%.
According to the IPO prospectus, Geely Holdings is still the largest shareholder of Volvo Cars, while Volvo will continue to enjoy Geely's entire automotive ecosystem. Because one of the purposes of Volvo's listing is to enhance brand value and accelerate the electrification transformation. Among them, 70% of the funds raised by the IPO are used for the transformation of electrification, including the upgrading of fixed assets.
I still remember that in 2010, Geely acquired Volvo Cars for 1.8 billion US dollars, and after more than a decade of development, it has been close to the original goal, which is an important capital for Volvo to go public, and it also confirms that this is not a risky action of Geely Automobile.
The Lynk & Co brand co-founded by Geely and Volvo has been recognized by 570,000 consumers in just 5 years, from Lynk & Co 01 to Lynk & Co 09, from fuel to hybrid, and even the future of pure electricity, is a comprehensive process.
There is also the Polestar brand, a global high-performance electric vehicle brand, which currently has two mass production models that will help Volvo's electrification transformation, but it has not yet found a breakthrough in the market, at least in the Chinese market.
Finally: Volvo Cars' IPO is the largest listing in Swedish history in 20 years, and it is also an important event for Geely's acquisition of Volvo, even if Volvo has been independently listed, the next ten or twenty years will still need Geely's help.