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.
