Volvo Cars thinks about an Initial Public Offering (IPO) and extends its CEO’s tenure.
When it comes to premium car makers, few have made larger strides than Volvo Cars in the last 5 years. Thanks in part to Geely’s financing, Volvo Cars has been able to create a new and exciting product stack. They’ve been very profitable over the years and they’ve not had to compromise on their values with regards to safety and climate neutrality. In fact, they’ve used their success to double down on these aspects.
However, the premium segment is one where loads of initial investments are required. Polished marketing and breakthrough technology isn’t cheap. It’s probably for this reason that Volvo Cars are now considering an Initial Public Offering on the Nasdaq Stockholm stock exchange. They’re still evaluating whether they should in fact go public.
In the meantime, they’ve also decided to extend the contract of their CEO, Håkan Samuelsson until the end of 2022. Read more about his previous contract extension here. He has been at the company’s helm since late 2012.
Here’s the press release with more.
PRESS RELEASE
The Board of Volvo Cars has decided to evaluate the possibility of an initial public offering (IPO) of the company on the Nasdaq Stockholm stock exchange later this year. A final decision to list will be subject to market conditions and there can be no certainty that a listing will proceed. It has also decided to extend chief executive Håkan Samuelsson’s contract to the end of 2022.
A potential listing could be a logical next step on Volvo Cars’ capital market journey and would enable new shareholders to participate in Volvo Cars’ future as the company continues its transformation into a technology driven, fully electrified car brand.
“We have supported the transformation and growth of Volvo Cars for the last 10 years, enabling the company to become a true premium brand with improved profitability,” said Eric Li, Chairman of Zhejiang Geely Holding, the parent of Volvo Cars, and Chairman of its Board of Directors. “As we look ahead, Volvo Cars is especially well positioned to deliver continued growth and harness the full potential of electrification and the delivery of safe autonomous drive functions. After a potential listing, Geely Holding would remain a major shareholder.”
“A potential listing on the Nasdaq Stockholm stock exchange could create an opportunity for global investors to participate in our journey to become a leader in the fast-growing premium and intelligent electric vehicle segment while continuing to deliver on what customers expect from the Volvo brand,” said Håkan Samuelsson, chief executive of Volvo Cars.
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 18:00 CET 12 May 2021.
