Volvo Cars IPO on Nasdaq Stockholm

Volvo Cars announces its intention to launch an Initial Public Offering and list on Nasdaq Stockholm

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Press release 4 October 2021

Volvo Cars, which reported record growth in unit sales and revenues in the first half of 2021, today announces its intention to launch an Initial Public Offering (IPO) and to list its class B shares on Nasdaq Stockholm, offering shareholders the opportunity to invest in one of the world’s fastest growing premium automotive companies.

The proposed IPO is expected to consist of the issuance of new shares by Volvo Cars to raise gross proceeds of approximately SEK 25 billion and a potential partial sale of shares by Volvo Cars’ main shareholder. In addition, Volvo Cars’ current Swedish institutional shareholders AMF and Folksam intend to remain as shareholders following completion of the IPO.

Volvo Cars is one of the world’s fastest growing premium automotive companies in terms of both units sales and revenue, providing customers around the world with the freedom to move in a personal, sustainable and safe way. Volvo Cars believes that its unique structure and focused strategy makes it one of the fastest transformers in the global automotive industry, with mid-decade ambitions dedicated to electrification, sustainability and digitisation. This strategy aims to build on Volvo Cars’ track record as a global force for automotive safety and innovation, which has been a hallmark of the company, headquartered in Gothenburg, Sweden, since it was founded in 1927.

To support the company’s transformation and its continued growth, Volvo Cars’ Board of Directors and its main shareholder, Geely Sweden Holdings AB (Geely Sweden) have agreed to apply for a listing of the company’s shares on Nasdaq Stockholm and thereby gain access to the Swedish and international capital markets and diversify Volvo Cars ownership base.

As a listed company upon completion of the IPO, Volvo Cars will enable global institutional and retail investors to participate in the next phase of the company’s value creation. Geely Sweden – a wholly-owned subsidiary of Zhejiang Geely Holding Co Ltd. which acquired Volvo Cars in 2010 – intends to remain the company’s largest shareholder. Volvo Cars will thereby continue to benefit from cooperation within the Geely ecosystem, providing valuable scale and market synergies.

Eric Li, Chairperson of Volvo Cars’ Board of Directors and ultimate owner of the main shareholder, says: “We have supported the transformation and growth of this iconic Swedish brand during a period of unprecedented change in our industry. Over the past decade, Volvo Cars has turned itself into one of the world’s fastest-growing carmakers. We will continue to support Volvo Cars as a majority shareholder in this ongoing global success story.”

Håkan Samuelsson, CEO of Volvo Cars, says: “Today is an important milestone for our company with the announcement that we intend to list Volvo Cars on Nasdaq Stockholm. The proposed IPO marks a new chapter for Volvo Cars, and we invite Swedish and international investors to participate in our future growth and value-creation. The decision to proceed with an IPO will help strengthen our brand and accelerate our transformation strategy – towards full electrification, direct consumer relationships and the next level of safety. This will position the company to deliver continuous growing volumes, revenues and profitability.”

The institutional investors AMF and Folksam currently hold 2.2 per cent of the shares in Volvo Cars through preference shares. Following completion of the IPO, AMF and Folksam intend to remain as shareholders in Volvo Cars through listed shares.

An overview of the transaction details is included below. Full terms, conditions and instructions for the proposed IPO will be included in a prospectus to be published by the company in connection with the planned listing. The company will make a further announcement when the prospectus is available.

The listing committee of Nasdaq Stockholm has assessed that Volvo Cars meets the applicable listing requirements, provided that customary terms and conditions are satisfied, including that the distribution requirement for Volvo Cars’ common class B shares is met no later than the first day of trading in Volvo Cars’ shares on Nasdaq Stockholm and that Volvo Cars applies for the admission to trading of its shares on Nasdaq Stockholm. The first day of trading is expected to be in 2021.

Further announcements relating to the proposed IPO will be made in due course.

For more information, please contact:

Volvo Cars Media Relations
+46 31-596525
media@volvocars.com

Volvo Cars Investor Relations
Anna Oxenstierna
+46 31-59 00 00
investors@volvocars.com

This information is information that Volvo Car AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13:00 CEST, October 4, 2021.

Transaction details

The offering is expected to consist of new common shares of class B issued by Volvo Cars and potentially existing common shares of class B sold by Geely Sweden. The new share issue is expected to raise gross proceeds of approximately SEK 25 billion. The offering is divided into two parts:

  • An offer to the general public in Sweden, Denmark, Finland and Norway, and
  • an offer to institutional investors in Sweden and abroad.

The offer to institutional investors in Sweden and abroad includes a private placement in the United States to persons who are qualified institutional buyers (“QIBs“) as defined in, and in reliance on, Rule 144A or pursuant to another available exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“).

All offers and sales outside the United States will be made in compliance with Regulation S under the U.S. Securities Act.

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