Volvo Cars saw its share price increase by 13% from its initial price offering (IPO) on its first day of trading.
The Swedish car manufacturer had set an initial price range between US$6.15-US$7.55 but announced on Monday it had settled at the bottom end of that spectrum. In the market, it reached US$7.03 this morning.
Volvo raised US$2.3bn of proceeds from the share sale.
READ: Volvo set IPO at lower level of initial range
The successful first day trading follows strong results this week from Ford and it is a major boost to the European automotive industry as it continues its transition to favour electric vehicles (EV).
Volvo Cars chief executive Hakan Samuelsson said the listing signified a shift in attitudes as it looks to keep its commitment to becoming a purely electric carmaker by 2030.
“It’s a very exciting journey, and now we have the money for it,” he said in a webcast opening ceremony this Friday.