The Volvo car brand has gone public via an initial public offering, with its shares listing on Sweden's Nasdaq Stockholm on Friday.
Volvo said it gained around 200,000 new shareholders and that the IPO was substantially oversubscribed.
The IPO price was set at 53 Swedish kronor (approximately $6.16) and, at the time of writing, the price per share has risen to 66 Swedish kronor.
The trading pushed Volvo’s market capitalization from $18 billion at the opening to about $23 billion. We'll point out that Tesla, which sells fewer vehicles than Volvo, is currently valued at more than $1 trillion. Yes, that's with a t.
Volvo CEO Hakan Samuelsson celebrates the company's listing on the Nasdaq Stockholm exchange
Volvo is expected to receive $2.4 billion out of the deal, which the automaker has said it will use to fund development of next-generation electric vehicles. Volvo, like some of its rivals, is committed to offering EVs only by 2030.
China's Geely, which bought Volvo from Ford in 2010 for $1.8 billion, remains the Swedish brand's biggest shareholder. Volvo and Geely also have a close collaboration that extends beyond ownership, as both companies also share technologies and production facilities.
Ahead of the IPO, Volvo confirmed plans to buy out its various Chinese joint ventures owned together with Geely. The joint ventures cover plants and sales operations, and buying them out increases Volvo's exposure to the Chinese market and the profits generated there.
Polestar is also due to go public, albeit via a so-called SPAC deal with Nasdaq-listed Gores Guggenheim. The Polestar deal is expected to close before the year out, after which Volvo and Geely will remain the main shareholders.