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Volvo Group Plans to Raise $2.9 Billion IPO for Funding its EV Shift

The Volvo Car Group AB is going to be looking to raise around 2.9 billion dollars in an initial public offering (IPO), which the company has been forging ahead with in spite of the chip shortages worldwide. This process is going to be helpful for the company ‘Volvo’ for funding the company’s shift to the fully electric cars along with a sales and subscription model of direct-to-consumer.

On Monday, 4th October 2021, Eric Li, chairperson of Geely, that owns Volvo said, they have been supporting the growth and transformation of the iconic brand of Sweden during a period of the unprecedented change in their industry, and he also said that, they are going to continue their support to Volvo as a majority shareholder in the ongoing success story across the globe.

The listing plan of Volvo has got a booster from the company ‘Polestar’, which is an electric car company that bas been backed by Volvo and Geely, and last month, the company has also agreed for going public through a blank-check company at a valuation of around 20 billion dollars, and once the deal will be completed, the company Volvo is expecting shut 50 percent of the combined firm.

This decision of IPO has put Volvo in the competition with electric vehicle producing company ‘Polestar’ which is going to be using the production network of the incumbent manufacturer.