$2.9 billion

Amount Volvo seeks to raise in an IPO amid transition to electric vehicles

The Swedish carmaker, owned by China’s Zhejiang Geely Holding, is offering shares at 53 to 68 kronor each, aiming to raise 25 billion kronor, a statement said yesterday.

The deal values Volvo Cars at as much as $23 billion, 11 years after the Chinese firm bought the business from Ford Motor Co. for $1.8 billion. The IPO is set to be Europe’s largest since January. The offering of as much as 21 per cent of Volvo Cars runs through October 27, and the shares are set to start trading in Stockholm on October 28.

The carmaker, with a plan to only sell full electric cars by 2030, plans to use the funds to add carmaking capacity so it can nearly double annual sales to over 1.2 million vehicles.