Volvo Cars goes public, launches IPO to raise $2.9 billion with eye on EV push

With an elevated focus on expertise that may allow Volvo to deliver out EVs with far enhanced per-charge vary and higher battery expertise, the company now goals to raise $2.9 billion by way of IPO it launched on Monday. The IPO, in accordance to some reviews, is ready to be Europe’s largest since January.

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Earlier this year, Volvo Cars unveiled its plans electrical automobiles and EV expertise. Volvo Cars has unveiled its formidable plan to solely promote full electrical vehicles by 2030. A key a part of its plans was work on new batteries that would enhance the vary of Volvo electrical automobiles to greater than 1,000 kilometres per cost.

The Swedish carmaker, owned by China’s Zhejiang Geely Holding Group, additionally plans to arrange a battery plant in Europe with 50 gWh manufacturing capability, bigger than the 35 gWh capability of Tesla’s Nevada gigafactory.

Volvo Cars is taking a look at an total valuation of $23 billion in an effort fund its electrical automobile initiatives sooner or later. Volvo Cars was purchased by Zhejiang Geely Holding Group 11 years in the past. It was earlier a part of Ford Motor and was valued at about $1.8 billion. The fund raise by way of the IPO can be going to be used to enhance Volvo’s capability to almost double its annual gross sales to greater than 1.2 million automobiles.

Hakan Samuelsson, CEO at Volvo Cars, mentioned, “We have a really clear technique to be an electrical company in 2030 and we’ve been on that journey for some years now. With this, after all, we are able to safe that transformation, due to course, it’s not freed from cost.”

Volvo’s IPO comes weeks after its EV wing Polestar, collectively owned by Geely, revealed its plans to go public in New York through a blank-check merger. The deal might enhance its worth of $20 billion as Volvo hoping for a 50 per cent stake. The four-year-old electrical automobile startup has a goal of delivering solely about 29,000 vehicles this year.

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