Volvo Cars hopes downsized IPO can rev up investors' electric dreams

Asia's Tech News Daily

FILE PHOTO: Volvo presents its new electric car Volvo C40 Recharge, in Stockholm

By Abhinav Ramnarayan and Helena Soderpalm

STOCKHOLM (Reuters) – Volvo Cars is hoping investors will buy into its long-term electric vehicle strategy and see past supply chain worries and questions about its shift to battery power as it gears up to make its market debut in Europe's biggest IPO so far this year.

Shares in the Swedish carmaker, owned by China's Zhejiang Geely Holding, are due to start trading on Friday, a day later than initially planned after it cut the size of its listing and priced it at the bottom of a previously-announced range, valuing the firm at just over $18 billion.

The listing comes at a time when investor appetite for the electric vehicle (EV) sector is robust, with Elon Musk's Tesla seeing its market value cross $1 trillion for the first time this week.

But concerns over how much control Geely would retain over the listed business, problems in the global supply chain and worries Volvo could be caught in trade wars involving China have curbed investor enthusiasm.

Geely agreed last week to give up enhanced voting rights that would have given it 98% of any shareholder vote after listing, despite its stake dropping to around 84%

Volvo Cars, whose models include the high-end XC-90 SUV, is in the midst of transforming to become a fully electric carmaker by 2030. Its Recharge electric models comprised 24.9% of its global sales in the first nine months of 2021, and it has a 49% stake in EV maker Polestar.

Faith in that transition could be key to the IPO's success.

“It's easier for a new company like Tesla or Polestar to start manufacturing electric vehicles, but for someone like Volvo transforming the old infrastructure and firing people and so on, it's a challenge,” said NordLB automotive analyst Frank Schwope.

“But even if it's not priced as expected it's encouraging for other companies as well. The COVID-19 pandemic was an inflection point for electric mobility,” he added.

So far, investors have only given partial approval. Volvo had sought a valuation of $18-$23 billion, before pricing the shares at 53 Swedish crowns apiece, at the bottom of that range.

“The owner needed the deal to work this time round, so there was a real willingness to engage with investors,” said a source familiar with the transaction.

“It has been a really tricky IPO market over the last few months, so it made sense to downsize the deal and price it sensibly. That's how the price discovery process works – this is good,” he added.

Expectations that rising inflation will lead to higher interest rates around the world have hurt stock market confidence and prompted a raft of IPO cancellations in Europe and the United States in recent weeks.

Many deals that did go through over the past year are now in the red, with the FTSE Renaissance IPO Index of recently-listed companies down 10.6% this year.

A flotation attempt by Volvo Cars in 2018 was postponed due to trade tensions and a downturn in automotive stocks.

($1 = 8.5883 Swedish crowns)

(Reporting by Helena Soderpalm; Editing by Mark Potter)

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

'Ban Nahi Paye Nawab', Nawazuddin's Heartbreaking Poem After Emmy Loss Will Melt Your Heart

© Provided by MensXP As Indians and as true followers of Hindi movies, we know that there is a huge divide in the industry when it comes to talent as ... Read more »

How to access Amazon Prime Video's Premier League coverage on your TV set

Amazon Prime Video’s Premier League coverage starts tomorrow (November 30). Action gets underway with an important bottom-of-the-table clash between Newcastle United and Norwich with kick-off at 7.30pm. Subscribers will then ... Read more »

Wolves transfer latest: Ruben Neves warning as Bruno Lage reveals stance

Hello and welcome to BirminghamLive’s latest Wolverhampton Wanderers ‘ transfer round-up. January recall? Wolverhampton Wanderers boss Bruno Lage has been asked about the possibility of recalling Dion Sanderson from Birmingham ... Read more »

Kanye West pays tribute to Virgil Abloh with Sunday Service cover of Adele's Easy on Me

Kanye West led a music tribute to Virgil Abloh with his Sunday Service choir, following news of the designer’s death from cancer, aged 41. © Getty Images Kanye West with ... Read more »

Historical BRIT Awards nominations unveiled on The BRITs Are Coming next month

Nominations for The BRIT Awards 2022 with Mastercard will be unveiled on December 18’s ‘The BRITs Are Coming’ TV special. © Bang Showbiz The BRIT Awards nominations are revealed next ... Read more »

Up to 250,000 names were on tax office's fraud ‘black list'

Photo: Depositphotos.com Up to 250,000 people may have had their names added to the Dutch tax office’s secret ‘black list’ of suspected fraudsters that left thousands in financial difficulty, according ... Read more »

Halo Infinite's February multiplayer event seemingly leaks

© Provided by GamePur We’re only a few weeks on from Halo Infinite’s launch and its first event, but the next event might have already leaked. Thanks to dataminers, players ... Read more »

Man saves husband's life by donating a kidney and maybe love is real after all

Denver husbands Reid Alexander and Rafael Díaz are truly a “perfect match” after Díaz donated a kidney to his beloved partner. Alexander told NBC News that he was diagnosed with ... Read more »

'I had chest pains from shouting': Why this mum wants parents to stop yelling

Yasmin has learned to use different strategies with her daughter (Collect) Hurrying her daughter out of the door on the school run, Yasmin Shaheen-Zaffar could feel her frustration growing. Like ... Read more »

PS5 restock: how to buy a PlayStation 5 on Cyber Monday

© Provided by T3 PS5 Cyber Monday Cyber Monday is here! With that, we’re hoping for plenty of opportunities to order a PlayStation 5 throughout the shopping event. Whether that’s ... Read more »

Ayob Khan terima gelaran Datuk dari Johor

© Provided by Sinar Harian JOHOR BAHRU – Sultan Johor, Sultan Ibrahim Sultan Iskandar berkenan mengurniakan Darjah Sultan Ibrahim Johor Yang Amat Disanjungi Pangkat Yang Kedua, Dato’ Mulia Sultan Ibrahim ... Read more »

Club World Cup draw: Who can Chelsea face? Date, time, how to watch and teams

© AFP via Getty Images clubworldcup2911a.jpg Chelsea are set to learn their opponents for the Fifa Club World Cup later on this afternoon as the draw for next year’s tournament ... Read more »

‘Kalau berani sebut nama syarikat', ADUN DAP dakwa Ketua Pembangkang Selangor bohong isu GLC

© Provided by Free Malaysia Today ADUN Bandar Baru Klang, Teng Chang Khim, berkata Ketua Pembangkang DUN Selangor, Rizam Ismail, berbohong apabila mendakwa mesyuarat Ahli Lembaga Pengarah membabitkan GLC Selangor ... Read more »

UK mahu haramkan kata laluan lalai di peranti

Kerajaan United Kingdom dijangka akan memperkenalkan undang-undang yang mengharamkan penggunaan kata laluan lalai dan memperkenalkan “Firewall” untuk kegunaan teknologi di sekeliling setiap hari. Ia dipanggil sebagai Rang Undang-undang Keselamatan Produk ... Read more »

Smart Christmas lights: How to add voice controls and more to your Christmas lights with Alexa, Google Home or Siri

© Provided by Pocket-lint Smart Christmas lights How to add voice controls and more to your Christmas lights with Alexa Google Home or Siri image 1 (Pocket-lint) – Ah Christmas, ... Read more »

PH logs 665 new Covid-19 cases, lowest in months

© Provided by The Manila Times ​​​​​​​ The Philippines reported 665 new Covid-19 cases on Monday, its lowest since last year. The last time the country logged 600 cases was ... Read more »

Amazon Dropped Thousands of Incredible Cyber Monday Deals—Here's What to Buy for Up to 73% Off Today

© Illustration by Julian Birchman and Emily Lundin Save big on cookware and kitchen tools from Nespresso, Lodge, Zwilling, and All-Clad. © Provided by Food & Wine Illustration by Julian ... Read more »

Robredo vows inclusive governance: ‘This is our chance'

VP Leni Robredo at All4Leni signing event screencap from Nagkaisa video Nov. 29, 2021 Vice President Leni Robredo on Monday vowed an inclusive government and a change from politics that ... Read more »

The Samsung Galaxy Z Fold 2 is 50% off for Cyber Monday

© Expert Reviews The Samsung Galaxy Z Fold 2 is 50% off for Cyber Monday Mobile phones Let’s make one thing clear from the get go: £899 is still a ... Read more »

Dubai opens nominations for fifth edition of Taqdeer Awards

© Provided by Khaleej Times Photo: Khaleej Times Nominations are now open for the fifth (2022) edition of the Taqdeer Awards, top UAE officials and organisers of the award announced ... Read more »

'Don't Open Link': Actor Shubhangi Gokhale Tells Fans As Her FB Account Gets Hacked

© Provided by News18 The Facebook account of Marathi actor Shubhangi Gokhale was hacked, she informed everyone on the social media platform. In her post, the actor also asked her ... Read more »

Uttarakhand Govt Likely to Take Final Call on Withdrawal of Char Dham Devasthanam Act This Week

© Provided by News18 Uttarakhand Govt Likely to Take Final Call on Withdrawal of Char Dham Devasthanam Act This Week The Uttarakhand government could take a final call this week ... Read more »

From Priyanka Chopra to Karan Johar: Bollywood mourns the demise of fashion designer Virgil Abloh

© Provided by Zee News  Mumbai: The demise of ace fashion designer Virgil Abloh has left everyone in a state of grief. Our Bollywood celebrities are also extremely saddened after ... Read more »

Antim Box Office Day 3: Salman Khan's Magic Works, Movie Collects Rs 18.61 Crore

© Provided by News18 Directed by Mahesh Manjrekar, Antim: The Final Truth released on November 26. It sees Salman Khan pitted against his brother-in-law Aayush Sharma. At the box office, ... Read more »

Go Fashion to debut on November 30. What could be the listing premium?

Go Fashion IPO Women’s bottom-wear brand Go Colors operator Go Fashion is likely to debut with a 65-70 percent premium on the bourses on November 30, given the IPO subscription ... Read more »

Omicron arrives in Canada and B.C.'s flood forecast: In The News for Nov. 29

In The News is a roundup of stories from The Canadian Press designed to kickstart your day. Here is what’s on the radar of our editors for the morning of ... Read more »

A wake-up call for startup funding in Canada

© Provided by Financial Post A man walks past a Sleep Country store on Queen Street East in Toronto’s Beaches area on Sept. 3, 2019. Stewart Schaefer, chief executive of ... Read more »

Keith Gerein: Will the economy or environment take priority in Alberta's recycling overhaul?

© Provided by Edmonton Journal The materials recovery facility at the Edmonton Waste Management Centre. If you’re anything like me, the pandemic has been a bit of a boon to ... Read more »

Priyanka Chopra Shares Cuddly Family Photo With Nick Jonas

On Friday, Priyanka Chopra shared photos from her Thanksgiving get together with husband Nick Jonas on Instagram, captioning it, ‘So much to be grateful for. Friends, family.. I love you ... Read more »

Roland Mouret has gone into administration

© STEVE PARSONS – Getty Images The British design house and royal-family favourite has suffered as a result of the pandemic London-based design house Roland Mouret has gone into administration. ... Read more »

Virgil Abloh And Wife Shannon: The Childhood Love Story Of The Chicago Couple

Virgil Abloh, Louis Vuitton artistic director and founder of the Off-White fashion label, has passed away following a private battle with cancer. © Bertrand Rindoff Petroff – Getty Images Virgil ... Read more »

Four more African countries added to UK red list

The UK has added four more African countries to its red list, following the six added last Thursday. © Getty Images/iStockphoto Malawi was one of the countries added from Sunday ... Read more »

Scam warning: Britons lose £50,000 to ‘convincing' Whatsapp fraud - act now

Victims across the country are being targeted by scammers pretending to be a close friend or family member on WhatsApp. Action Fraud, the scam watchdog, reports that the scam tactic ... Read more »

Millionaire film producer on the 'three top tips' that could make you rich

The business man in his late thirties came up with his niche business idea after spotting a gap in the market and working on his side hustle for just two ... Read more »

«Nur» 627'000 Autos produziert: Auch Toyota im Oktober von Chipmangel gebremst

Der japanische Autobauer Toyota hat im Oktober wegen des Chipmangels und anderer fehlender Komponenten gut ein Viertel weniger produziert. © Bereitgestellt von Blick Toyota kann wegen Chipmangel nicht voll produzieren ... Read more »

Lobster pots, wild moors and Dracula: a car-free break in Whitby

Photograph: Edwin Remsberg/Getty Images The harbour ripples like shot silk. The smell of fried fish drifting past lobster pots on the cold granite dock makes me nostalgic. I’ve been lured ... Read more »

Tell us: how have you been affected by the Covid Omicron variant?

We would like to hear how you have been affected by the new variant first identified in the southern Africa region The Scottish government has announced that six cases of ... Read more »

Yemassee police to get $229K from federal agency to hire more officers. What they'll do

The Yemassee Police Department is getting nearly a quarter of a million dollars from the federal government to hire two additional officers for community policing efforts. As part of a ... Read more »

UPDATE 1-Omicron poses "very high" global risk, world must prepare -WHO

* WHO briefs on new coronavirus variant Omicron * Says overall global risk “assessed as very high” * Urges member states to vaccinate, shore up health systems * “Uncertainties” on ... Read more »

YOUR TURN: Playing vigilante without consequences

Having spent my entire professional life as a county and state criminal prosecutor and now retired federal judge, I claim a certain level of expertise in commenting on the Kyle ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic