Swedish pension providers Folksam and AMF have both announced they bought billions of kronor of newly-issued shares in Volvo Cars in the initial public offering (IPO) which took place on the Stockholm Stock Exchange on 28 October for the portion of equity not kept by its Chinese owner.
Folksam announced that in addition to the Folksam Group converting all preference shares into ordinary shares, an additional SEK 1 billion is invested in connection with Volvo Cars’ IPO making Folksam Group’s total investment in Volvo Car’s ordinary shares amounts to more than SEK 3.1 billion.
AMF announced that the company has invested a total of SEK 5.5 billion in Volvo Cars with the investment of SEK 2.3 billion in new shares, and converted preference shares to a value of SEK 3.2 billion. “AMF’s total investment in Volvo Cars thus amounts to SEK 5.5 billion, corresponding to just over 3 percent of the total number of shares in the company,” AMF stated.
Volvo, which is owned by Chinese group Zhejiang Geely Holding, announced on 29 October that the company welcomed over 200,000 new shareholders as it listed on the Nasdaq Stockholm stock exchange. “The initial public offering attracted strong interest from institutional investors in Sweden and abroad as well as from the general public in the Nordics,” Volvo stated.