Volvo Targeting a $1 Billion Share Offer

After raising nearly $500 million from Swedish investors in December, Volvo Cars is hoping to raise an additional $500 million by selling preferred shares of stock. That deal was seen as a major milestone in the company’s turnaround after suffering deep losses under previous owner, Ford.

“Today’s move is another step towards Volvo Cars’ long expressed ambition to act as a listed company,” Volvo said in an official statement back in January. If successful, this new $500 million round would be even further proof that the “hands off” approach from Volvo’s Chinese owners, Geely, is working- and, some think, that an IPO is coming. This, despite a statement from Geely saying that it stands by statements indicating that there are “no immediate plans” for an IPO … all while declining to define the term “immediate”.

Here’s what I think: after the success of the SPA platform XC90 and recent launch of the all-new XC60, I’d definitely consider Volvo stock a “buy”.

 

Sources: Wall Street Journal, Reuters.

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