Geely wants to bring Volvo to the stock exchange

The Chinese car company Geely wants to bring its Swedish car subsidiary Volvo Cars to the stock exchange in Stockholm, as expected. The new shares are expected to generate gross proceeds of around 25 billion Swedish kronor (2.5 billion euros), as Volvo announced in Gothenburg. Geely also wants to place part of its shares. Volvo Cars is to be listed on Nasdaq in Stockholm. Volvo boss Hakan Samuelsson described the project as an important milestone and a new chapter for the car manufacturer. The Swedes want to use the money for industry upheaval and further growth. The first trading day should take place this year. Geely founder and owner Li Shufu said his company wanted to remain majority owner of Volvo. According to Volvo, other major shareholders will also remain on board. Volvo has been planning an IPO for a long time, but had to put it on hold in between. A new attempt to bring the premium manufacturer onto the floor has been underway since May of this year. The company wants to publish details. In media reports so far had been speculated about a possible valuation of around 20 billion US dollars (17.2 billion euros). The Chinese took over Volvo Cars in 2010 for $ 1.8 billion from the US auto company Ford. The car manufacturer Volvo Cars has been separated from the Swedish commercial vehicle manufacturer Volvo AB for decades, in which Geely also has a stake and which is listed on the stock exchange. Li Shufu is also the largest single shareholder in the German Daimler group with a stake of around 9.7 percent. Volvo is the first conventional automaker to cease production of vehicles powered exclusively by internal combustion engines in 2019. Since then, every new Volvo has been either an all-electric or a hybrid model.