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InvestmentsGeely's Volvo Cars jump 13% as begin 'exciting journey' By Reuters

Geely’s Volvo Cars jump 13% as begin ‘exciting journey’ By Reuters

© Reuters. FILE PHOTO: The brand of Swedish truck maker Volvo is pictured on the IAA truck present in Hanover, September 22, 2016. REUTERS/Fabian Bimmer

By Helena Soderpalm and Abhinav Ramnarayan

STOCKHOLM (Reuters) – Automaker Volvo Cars’ shares rose 13% above their providing worth in its buying and selling debut in Stockholm on Friday, after completion of Europe’s greatest preliminary public providing (IPO) thus far this yr.

The Gothenburg-based firm lower the dimensions of its itemizing and priced it on the backside of a previously-announced vary on Monday, valuing it at simply over $18 billion.

The profitable deal and aftermarket efficiency is a lift to a European automotive trade that’s making a difficult transition in direction of electrical autos.

It additionally reveals that whereas the IPO euphoria of the primary half of 2021 is over, the market is open for brand spanking new listings of sizeable firms with a narrative to inform.

Volvo Cars Chief Executive Håkan Samuelsson stated the itemizing symbolised a recognition of its transformation plans, within the quickly altering automotive sector.

“It’s a very exciting journey and now we have the money for it,” he advised journalists and traders in a webcast opening ceremony on Friday.

Shares within the carmaker, which is majority owned by Geely Holding, had been buying and selling at 59.95 Swedish crowns ($7.03) at 0745 GMT, after being priced at 53 crowns within the preliminary public providing (IPO).

Investor urge for food for the electrical automobile (EV) sector is robust.

However, considerations over how a lot management Geely will retain over Volvo, issues within the international provide chain and worries automotive makers may very well be caught in commerce wars involving China have curbed investor enthusiasm.

Geely chairman Eric Li stated that when Geely acquired Volvo, its aim had been to ship “the tiger back to the mountains”.

“Now our goal is to give that tiger wings and let it soar,” he stated in a pre-recorded video.

($1 = 8.5219 Swedish crowns)

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