Photo: Volvo
Volvo announced it would make an IPO after Rivian, and it did that before the American competitor. The initial public offering of its shares at Nasdaq Stockholm helped it raise SEK 20 billion, the equivalent to $2.3 billion. That’s less than the company initially expected to earn.
In an interview with Automotive News at the beginning of October, the company said its goal was to reach SEK 25 billion, equivalent to $2.9 billion. Hakan Samuelsson said that Volvo could finance its way into electric cars without the IPO. However, the process was a sort of insurance because Volvo was not sure if it could count on the same market conditions in the next five years.
On October 25, Volvo announced a change of plans, expecting to raise precisely the $2.3 billion it now has attained. Although that seems to have been in the plans, it is much less than the company wanted at the beginning of the month.
In that sense, and although the company said it does not desperately need it, it welcomes the financial cushion the IPO offered. The Swedish carmaker must hope now that market conditions will stay stable in the future: $600 million is a lot of money. It can finance a vehicle development program or factory expansions and changes.
Samuelsson seemed happy that the shares reached a higher price than the initial listing of SEK 53 ($6.21 at the current exchange rate). According to Automotive News, they had achieved a price of SEK 63 ($7,38) at 12:45 PM local time. Volvo's CEO said that now it has the money to become an electric-only car company, something it has pledged to do by 2030.
With the money from this IPO, Volvo also intends to double its annual sales to 1.2 million vehicles by 2025. That will depend on the success of the new vehicles it plans to reveal, even if the Volvo XC90 replacement is not exactly an affordable and high-volume option.
On October 25, Volvo announced a change of plans, expecting to raise precisely the $2.3 billion it now has attained. Although that seems to have been in the plans, it is much less than the company wanted at the beginning of the month.
In that sense, and although the company said it does not desperately need it, it welcomes the financial cushion the IPO offered. The Swedish carmaker must hope now that market conditions will stay stable in the future: $600 million is a lot of money. It can finance a vehicle development program or factory expansions and changes.
Samuelsson seemed happy that the shares reached a higher price than the initial listing of SEK 53 ($6.21 at the current exchange rate). According to Automotive News, they had achieved a price of SEK 63 ($7,38) at 12:45 PM local time. Volvo's CEO said that now it has the money to become an electric-only car company, something it has pledged to do by 2030.
With the money from this IPO, Volvo also intends to double its annual sales to 1.2 million vehicles by 2025. That will depend on the success of the new vehicles it plans to reveal, even if the Volvo XC90 replacement is not exactly an affordable and high-volume option.
Google News