Volvo's all-electric future is officially underway. The new Volvo C40 Recharge has just joined the XC40 Recharge in the lineup, and the next-generation XC90 will also be going purely electric. By 2030, all Volvo models will ditch internal combustion. The Swedish luxury brand also recently announced it'll go leather-free for sustainability. But perhaps the biggest piece of recent news is Volvo's upcoming IPO, estimated to be worth $20 billion.
According to a new Reuters report, however, it could be worth a few billion more. The Geely-owned company now values its IPO at around $23 billion. Like before, it's expected to be the highest listing in Europe this year. For now, it'll only go public on the Nasdaq Stockholm stock exchange. Supposedly, it'll begin trading shares on October 28.
Just last month, Polestar, which is owned by both Volvo and Geely, announced its own plans to go public, though it'll be done with a US-listed special purpose acquisition company, or SPAC. Its estimated value comes to $20 billion. It would make sense for Volvo to be worth a bit more than that. Volvo predicts the issue of new shares will provide it with very good gross proceeds even before transaction costs.
Geely, it should be noted, is set to remain Volvo's biggest shareholder after the listing. Volvo has had plans to go public since at least 2018 but the timing wasn't right. Back then, there were ongoing trade tensions between China and the west.
Automotive stocks, in general, were also losing value. And then came the coronavirus pandemic. That alone caused great havoc and continues to do so in some cases. But the dust has begun to settle and Volvo feels the time is right to make its move. It's become a major luxury player in just the past decade or so. Prior to this, it was long known for its dedication to safety.
Volvo was always considered a premium brand but its new luxury status has caught the attention of major players like BMW and Mercedes-Benz. Tesla may be looking on with interest as well, particularly at Polestar. We'll know Volvo's final IPO valuation soon enough, and you can bet that its rivals will be watching with great interest too.