Volvo Cars sets listing price at low end of range, scales back offering – Reuters

People look at a Volvo XC40 car during the Beijing International Automotive Exhibition, or Auto China show, in Beijing, China September 26, 2020. REUTERS/Thomas Peter

STOCKHOLM, Oct 25 (Reuters) – Geely-owned Volvo Cars set a fixed price of 53 crowns ($6.2) per share for its planned listing on Monday – the low end of its previously announced range – and said it would scale back the size of the initial public offering (IPO).

Automaker Volvo, owned by Chinese Geely Holding (GEELY.UL), had previously said the shares would be priced within a range of 53 to 68 crowns per share. read more

The Gothenburg-based carmaker said on Monday it was planning to raise around 20 billion Swedish crowns ($2.33 billion) in the IPO, down from the 25 billion it had previously aimed for.

It added that Geely Sweden Holdings AB would not exercise an upsize option, while the amended offering would result in a free float of between 16.0% and 17.9%.

“The Board of Directors of Volvo Cars has today resolved to set a fixed price of SEK 53 per share (within the previously communicated price range) and to reduce the size of the new issue of common shares of class B in the offering to raise gross proceeds of approximately SEK 20 billion,” Volvo Cars said in a statement.

Volvo said the first day of trading on Nasdaq Stockholm was expected on Oct. 29, one day later than it had previously announced.

($1 = 8.5737 Swedish crowns)

Reporting by Helena Soderpalm; editing by Niklas Pollard

Our Standards: The Thomson Reuters Trust Principles.


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