Because Volvo tries the stock market raffle

7 October 20213 years ago babelfish

The Swedish manufacturer has announced its intention to go public on the Stockholm stock exchange by the end of the year. Goal: Raise $ 2.9 billion through a takeover bid. The in-depth analysis by Andrea Tartaglia

Volvo is playing the public listing card again, a move that follows the latest attempt in 2018 by about three years. 9 billion dollars) through a public purchase offer (IPO). The listing will take place on the Nasdaq stock exchange in Stockholm and according to the announcement it will start by the end of 2021.

There are not many details provided by Volvo, at the moment it is not known neither the number of shares that will end up on the market nor the relative price. What is certain is that the listing will take place through the offer of shares resulting from a capital increase and of securities offered for sale by the Chinese holding company Zhejiang Geely, the main shareholder of the Scandinavian manufacturer. The latter will maintain the role of majority shareholder, but has not disclosed how many shares it will place on the market.

FROM FORD TO GEELY, THE ELECTRIC CAR IN THE SIGHT

Prior to the entry into the orbit of Geely – which took over the company from Ford Motor Company in 2010 – the models produced by Volvo did not have the necessary appeal to act as antagonists to the German and Japanese premium models. The Chinese financed Volvo's rebirth, paving the way for electrification and opening the doors to the Chinese market. In 2018, the stock market listing seemed imminent, then postponed due to trade tensions and the decline in auto stocks. Today Volvo is a brand with a new appeal, once again competing with Audi, BMW and Mercedes and with a renewed presence in the strategic American market. Among the manufacturers, he was among the first to take the electric car route with conviction with the aim of eliminating thermal engines by the end of the decade. To confirm this, starting from 2019 each new model launched includes an electric or hybrid version.

FOR THE WSJ VOLVO IS WORTH 21 BILLION

With a view to the upcoming listing on the stock exchange, theWall Street Journal has set the valuation of Volvo at 21 billion euros (25 billion dollars), a figure that puts it ahead of Renault, which is worth 10 billion. very far from the values of global giants like Volkswagen or General Motors, far even from the capitalization reached by Tesla (767 billion dollars), but the listing can undoubtedly provide a further boost to electrification projects. Also because Volvo can count on the positive experience of the Polestar subsidiary, a manufacturer of high-performance electric cars. Last week, in fact, Polestar – jointly owned by Volvo, Geely and other investors – announced plans to merge with Gores Guggenheim Inc (an American acquisitions firm) and go public in New York, in an agreement that values at 20 billion. dollars the subsidiary of Volvo. A good encouragement in view of the debut on the Stockholm stock exchange.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/perche-volvo-tenta-la-riffa-della-borsa/ on Thu, 07 Oct 2021 06:04:00 +0000.