Volvo Cars’ Proposed IPO and Listing on Nasdaq Stockholm

Clifford Chance advised Volvo Car AB and its main shareholder, Geely Sweden, on the deal. White & Case advised the underwriting syndicate.

The proposed IPO is expected to consist of the issuance of new shares by Volvo Cars to raise gross proceeds of approximately SEK 25 billion (approximately US$2.8 billion) and potentially the sale of some of its existing shares by Geely Sweden.

Goldman Sachs Bank Europe SE and Skandinaviska Enskilda Banken AB acted as joint global coordinators and joint bookrunners; BNP PARIBAS, HSBC Continental Europe, J.P. Morgan AG, Morgan Stanley & Co. International plc and Nordea Bank Abp, filial i Sverige acted as joint bookrunners; and Carnegie Investment Bank AB and Swedbank AB acted as Co-Lead Managers on the IPO.

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. Volvo Cars is now one of the world’s fastest growing (both in terms of units sold and revenue) premium automotive brands and is focused on the design, engineering, manufacturing, distribution and sale of premium passenger cars, with particular focus on sustainability, fully electric cars, direct to consumer relations including subscription and other new mobility services. Since Geely Sweden became majority owner of Volvo Cars in 2010, Volvo Cars has gone from selling 373,525 cars to more than 770,000 cars in over 100 countries during the twelve months ended 30 June 2021.

Clifford Chance is also advising Volvo Cars as the largest shareholder in Polestar, the electric vehicle manufacturer, in connection with Polestar’s proposed Nasdaq listing in New York which has an implied enterprise value of approximately U.S.$20 billion. Polestar’s planned listing on the Nasdaq stock exchange in New York will be made through a business combination with Gores Guggenheim, Inc, a special purpose acquisition company (SPAC) formed by affiliates of The Gores Group and Guggenheim Capital LLC. 

The Clifford Chance team was led by London-based ECM partner Simon Thomas (Picture) and US securities partner Andrew Kelly. The partners were supported by US counsel Terrence Moloney, ECM senior associate Leonid Stoliarski, ECM associates Yuli Adagun and Luke NG, and US law clerk Teri Teng. The core team were assisted by New York partners, David Brinton (Corporate) and Jon Zonis (Capital Markets), and Counsel Matthew Warner (Corporate) in connection with the Polestar transaction.

The White & Case team which advised on the transaction was co-led by partners Johan Thiman (Stockholm) and Mikko Hulkko (Helsinki) and included associates Thomas Killeen (Helsinki), Christoffer Nilmén and Izabella Barisa (both Stockholm). Lawyers from the White & Case offices in Dubai, Hong Kong, London, Melbourne, Singapore and Tokyo also advised on the transaction.

Involved fees earner: Yuli Adagun – Clifford Chance; David Brinton – Clifford Chance; Andrew Kelly – Clifford Chance; Terrence Moloney – Clifford Chance; Leonid Stoliarski – Clifford Chance; Simon Thomas – Clifford Chance; Matthew Warner – Clifford Chance; Jonathan Zonis – Clifford Chance; Izabella Barisa – White & Case; Mikko Hulkko – White & Case; Thomas Killeen – White & Case; Christoffer Nilmén – White & Case; Johan Thiman – White & Case;

Law Firms: Clifford Chance; White & Case;

Clients: BNP Paribas; Carnegie Investment Bank AB; Geely Sweden Holdings AB; Goldman Sachs Bank Europe; HSBC Continental Europe; J.P. Morgan Securities LLC; Morgan Stanley; Nordea Bank AB; Nordea Bank Finland Plc; Skandinaviska Enskilda Banken AB; Swedbank; Volvo;

Giulia Di Palma

Author: Giulia Di Palma