Volvo is considered the safest car in the world, and it soon could become one of the most valuable too. The Swedish auto giant is eyeing an IPO that could raise up to $2.9b. The company is owned by Chinese multinational automotive company Geely, which took over in 2010 for $1.4b. After the public offering, Geely will remain the majority shareholder.
Like many of its competitors, Volvo has vowed to shift the entirety of its car models to electric vehicles by 2050. The incoming fresh funds from the IPO will help the company's transformation and aid in achieving the targeted 8-10% operating margins by 2025.
Why it matters
The IPO news comes as the company has been struggling to recover from the global semiconductor shortage. On top of this, China has recently passed a regulation that requires a min percentage of care sales to exclusively be EVs in the next decade.
