Volvo, the Swedish-based automaker, announced that the company would sell shares to fund its EV transformation strategy.
According to the announcement, the companies parent company, Geely, has applied to hold an initial public offering on NASDAQ Stockholm. They believe they will raise 25 billion kroner or 2.9 billion USD with the selling of shares.
The money raised will help Volvo reach its lofty goals. As per company releases, they aim to double their sales by 2025 to 1.2 million vehicles, with half of those sales being EVs.
Further to this, they want their entire lineup fully electrified by 2030.
In addition, Volvo is moving away from relying solely on the traditional dealership model. The company hopes to have half of its sales from online channels by 2025.
This IPO comes at a time when Volvo is struggling. The pandemic has hit them hard with sales tumbling 30%. However, the fall is primarily due to the COVID-19 pandemic shutting down Volvo’s manufacturing facilities in Southeast Asia which led to an overall shortage of vehicles.