Sweden's Volvo Cars Shares Leap 22% On Market Debut

Volvo Cars shares surged 22% on their Stockholm market debut on Friday after wrapping up Europe's biggest IPO of the year so far in a boost for new issues markets and carmakers' vision of an electric future, Helena Soderpalm and Abhinav Ramnarayan reported for Reuters.

Photo Insert: Håkan Samuelsson, President and CEO of Volvo Cars, rings the NASDAQ bell at 0900 to open trading.

The Gothenburg-based company cut the size of its listing and priced it at the bottom of a previously-announced range on Monday, valuing it at just over $18 billion and making it Sweden's second-largest listing yet.

But the successful deal and strong market reaction - which propels the valuation to about $22 billion - is a lift for a European automotive industry that has embarked on a challenging transition towards electric vehicles (EVs).

It also shows that while the euphoria over initial public offerings (IPO) in the first half of 2021 is over, the market is open for new listings of big companies with a story to tell.

Volvo Cars Chief Executive Håkan Samuelsson said the listing showed recognition of its transition plans, adding it would be key for Volvo to demonstrate it is on track to be the "fastest transformer."

He added: "There's a much bigger interest in the market to invest in electric car makers than in the conventional ones. So we better do what we said we would."

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic