Volvo set IPO at lower level of initial range


Volvo Cars, owned by Geely Sweden Holdings AB, announced today that it would be trimming the price of its initial public offering (IPO) to US$6.15 per share.

The Swedish car manufacturer had set an initial price range between US$6.15-US$7.55 but today announced it has settled at the bottom end of that spectrum.

As a result, Volvo hopes to raise proceeds of approximately US$2.3bln from the new issue of common shares in the offering.

READ: Volvo the latest to take on Tesla with vow to be all electric by 2030

At the issue price, Volvo would be valued at just over $18bn, well below US$23bn it would have hope for at the top-end of the price range.

Geely, which paid Ford US$1.8bln for Volvo Cars in 2010, would not exercise an over-allotment option.

The amended offering would result in a free float of 16% to 17.9%.

The first day of trading on Nasdaq Stockholm is now excepted on 29 October, a day later than planned.


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