The company is moving ahead with the share sale even as a shortage of semiconductors has crimped global auto production
Swedish auto giant Volvo Cars has announced that it planning to file for an initial public offering (IPO) for its electric vehicle business.
Owned by China’s Zhejiang Geely Holding Group Co, Volvo plans to raise around 25 billion kroner (USD2.9 billion) by selling shares for which it will launch the IPO on Nasdaq Stockholm.
The money raised from the IPO will help fund the company’s plan to transform into an all-electric car company and expanding further into online sales.
It will also invest in battery supply in Europe, the U.S. and China and in the in-house production of electric motors.
The company aims to nearly double sales by 2025 to 1.2 million vehicles, half of which will be battery electric cars, and wants its entire lineup to be all electric by 2030.
“We’re going to be the fastest in the business to transform, to electrification – 2030 no more combustion cars. And that’s just one one part,” CEO Hakan Samuelsson said in an interview.
The company is moving ahead with the share sale even as a shortage of semiconductors has crimped global auto production.
Most of Volvo’s current lineup is made up of plug-in hybrid and so-called mild hybrid models. Battery electric vehicles account for only a small fraction of the total sold.
