Volvo Cars shares soar after IPO

The public share offering will help Volvo finance its shift to electric vehicles
The public share offering will help Volvo finance its shift to electric vehicles.

Shares of the Swedish car brand Volvo debuted Friday on the Stockholm stock exchange, with the price rising sharply in early trading.

As the market opened on Friday shares in Volvo Cars quickly rose nearly 10 percent to over 58 kronor ($6.8, 5.8 euros).

The price per share for the offering had been set at 53 Swedish kronor, at the bottom end of the range Volvo announced last week of between 53 and 68 kronor per ahead of its (IPO).

On Monday, Volvo Cars said it planned to raise 20 billion kronor from the offering after first announcing plans to go public in early October, while noting that China's Geely would remain its largest shareholder.

The Swedish automaker had been struggling until Geely acquired it from US giant Ford for $1.8 billion in 2010.

Volvo's image and sales have dramatically improved since then, riding the wave of popularity of SUVs.

"Our industry is changing, and we strive to lead that transformation. That is why Volvo Cars has an ambitious strategy to become fully electric by 2030," Volvo Cars CEHakan Samuelsson said in a Friday statement.

"Today's listing will help us get there," he added.

© 2021 AFP

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