Volvo Cars shares soar after IPO

Stockholm (AFP) – Shares of the Swedish car brand Volvo debuted Friday on the Stockholm stock exchange, with the price rising sharply in early trading.


As the market opened on Friday shares in Volvo Cars quickly rose nearly 10 percent to over 58 kronor ($6.8, 5.8 euros).

The price per share for the offering had been set at 53 Swedish kronor, at the bottom end of the range Volvo announced last week of between 53 and 68 kronor per share ahead of its initial public offering (IPO).

On Monday, Volvo Cars said it planned to raise 20 billion kronor from the offering after first announcing plans to go public in early October, while noting that China's Geely would remain its largest shareholder.

The Swedish automaker had been struggling until Geely acquired it from US giant Ford for $1.8 billion in 2010.

Volvo's image and sales have dramatically improved since then, riding the wave of popularity of SUVs.

"Today’s listing will help us get there," he added.