The overallotment option in the IPO of Volvo Cars has been exercised in full
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Press release
9 November 2021
The overallotment option in the IPO of Volvo Cars has been exercised in full
Goldman Sachs Bank Europe SE and Skandinaviska Enskilda Banken AB (publ) (”SEB”) (the “Joint Global Coordinators”) have today notified Volvo Cars and Geely Sweden Holdings AB (“Geely Sweden”) that the overallotment option has been exercised in full and that the stabilisation period has ended.
In connection with the initial public offering of Volvo Cars and the listing of its common shares of class B on Nasdaq Stockholm on 29 October 2021 (the "Offering"), Geely Sweden granted the Joint Global Coordinators an option to acquire up to an additional 56,603,773 existing shares in Volvo Cars, corresponding to maximum 15 per cent of the number of shares in the Offering, to cover any overallotment in connection with the Offering (the “Overallotment Option”), exercisable in whole or in part within 30 days from the date on which Volvo Cars’ shares commenced trading on Nasdaq Stockholm. The Overallotment Option has been exercised in full.
No price stabilisation activities have been carried out since the Offering, and due to the Volvo Cars’ share price performance, SEB has, as stabilising manager on behalf of the Joint Global Coordinators, decided to end the stabilisation period.
About Volvo Cars
Volvo Cars is one of the world’s fastest growing premium automotive brands (both in terms of units sold and revenue) and is focused on the design, engineering, manufacturing, distribution and sale of premium passenger cars, now with particular focus on sustainability, fully electric cars and direct to consumer relations, including subscription and other new mobility services.
Founded and headquartered in Gothenburg, Sweden in 1927, over the course of its history, Volvo Cars has been a global force for automotive safety and innovation. Volvo Cars has been credited with a number of industry leading innovations that are now standard in cars across the world, such as the three-point safety belt, the side impact protection system, side impact airbags and autonomous emergency braking.
Since Geely Sweden became majority owner of Volvo Cars in 2010, the company has implemented a strategic transformation, from its status as a division within a large automobile group, under its previous majority owner, into a standalone premium automobile brand. Volvo Cars has gone from selling 373,525 cars in 2010 to more than 770,000 cars in over 100 countries during the twelve months ended 30 June 2021.
Moreover, the company is dedicated to full electrification and its intention is to be a pure electric car company by 2030 and the company is also currently undergoing a shift in its business model to a direct sales model in most markets. Volvo Cars’ commitment to electrification has also resulted in the launch of Polestar, a progressive stand-alone electric performance car brand, in which Volvo Cars currently own 49.5 per cent. Volvo Cars is also holding 30 per cent of the fast-growing automotive brand LYNK&CO, which focuses on young open-minded urban people through a flexible customer offering.
For more information, please contact:
Volvo Cars Media Relations
+46 31-596525
Volvo Cars Investor Relations
Anna Oxenstierna
+46 31-59 00 00
The information was submitted for publication, through the agency of the contact person set out above, at 09:00 CET on November 9, 2021.
Important information
This announcement is for information purposes only and does not constitute an offer or invitation for the sale, issuance or subscription for any securities, nor does it purport to give legal, tax or financial advice and is not for release, distribution or publication, whether directly or indirectly and whether in whole or in part, into or in the United States, Australia, Canada or Japan or any (other) jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This announcement is for information purposes only and are not intended to constitute, and should not be construed as, an offer to sell or a solicitation of any offer to buy any securities of the Company, and such securities (the "Securities") in the United States, Australia, Canada or Japan or in any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of such jurisdiction. The Securities referred to herein may not be sold in the United States unless they are registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or are exempt from registration. Any offering of the Securities described herein has not been and will not be registered under the U.S. Securities Act and accordingly any offer or sale of these Securities may be made only in a transaction exempt from the registration requirements of the U.S. Securities Act. Any Securities sold in the United States will be sold only to "qualified institutional buyers" (as defined in Rule 144A under the U.S. Securities Act). There will be no public offering of the Securities referred to herein in the United States.
This communication is only addressed to, and directed at, persons in member states of the European Economic Area (other than Sweden, Denmark, Finland and Norway) who are "qualified investors" within the meaning of Article 2(e) of the Prospectus Regulation ("Qualified Investors"). In the United Kingdom, this communication is being distributed only to, and is directed only at, “qualified investors” within the meaning of Article 2(e) of the Prospectus Regulation as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 who (i) have professional experience in matters relating to investments who fall within the definition of "investment professional" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) are high net worth entities as described in Article 49(2) of the Order, and (iii) other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this communication relates is available only to and will only be engaged in with such persons. This communication must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the European Economic Area (other than Sweden, Denmark, Finland and Norway), by persons who are not Qualified Investors.
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