Volvo Car AB is looking to raise 25 billion kronor ($2.9 billion) in a Stockholm IPO, making it the largest in Europe since January. This comes as the Swedish vehicle manufacturer looks to make headway into the electric vehicle sector.
The company revealed in a statement on Monday that it’s looking to offer shares at 53 kronor to 68 kronor each, thereby valuing Volvo Cars at as much as $23 billion.
These fundraising efforts could prove crucial to Volvo’s ambitious plan to only sell electric vehicles by the year 2030. The company also plans to use funds raised to double its annual sales figures, with a target of 1.2 million vehicles.
Chief Executive Officer Hakan Samuelsson made the following statement during an interview: “We have a very clear strategy to be an electric company in 2030 and we’ve been on that journey for some years now. With this, of course, we can secure that transformation, because of course, it’s not free of charge.”
Even before the IPO has launched, Volvo has made inroads into its fundraising efforts. A group of pension funds and institutional investors have agreed to purchase 6.4 billion kronor worth of shares in the company.
