But the strong market reaction, which raised its valuation to roughly u $ s22,000 million, is a boost for a European auto industry that has embarked on a challenging transition to electric vehicles.
It also shows that while the euphoria over Initial Public Offerings in the first half of 2021 is over, the market is open to new IPOs of companies that are attractive.
Volvo Cars Chief Executive Hakan Samuelsson said the IPO shows recognition of its transition plans.
“There is a much greater interest in the market to invest in electric car manufacturers than in conventional ones. So we better do what we said we would do,” he told Reuters in an interview.
Shares of the automaker, which is majority owned by Chinese company Geely Holding, were trading at SEK 65.60 ($ 7.59), after trading at SEK 53 on the IPO.