Volvo Cars Aims to Increase Its Stake to $2.9 Billion

The car company is expected to issue new shares to increase total revenue by around SEK 25 billion (US$2.8 billion) and a potential partial sale of shares by a major shareholder in Volvo Cars. The existing institutional shareholders AMF and Stockholm-based insurance company Folksam intend to remain shareholders in Volvo Cars after the completion of the planned initial public offering. The two companies currently own 2.2% of Volvo Cars' shares through preferred stock. In July, Volvo Cars struck a deal to buy parent company Geely from its joint venture in China. Also in July, Volvo Cars said it was acquiring additional stakes in Polestar. Additional Polestar shares will increase Volvo Cars' stake to 49.5%.