Volvo cars seen outside a Volvo car dealership in Edmonton, Alberta, Canada on October 26, 2023.
Artur Vidak | Noor Photos | Getty Images
Volvo Cars shares plunged 14% on Friday morning after its parent Zhejiang Geely Holding Group began selling about 100 million shares in the Swedish automaker.
As of 9 a.m. London time, Volvo shares were down 10.31% after recouping some losses. The stock fell 14% earlier in the day and hit a record low, according to Reuters data.
auspicious explain In a statement earlier on Friday, the company said it would issue further Volvo shares, in line with its long-term strategy.
The company said the move was aimed at increasing Volvo’s liquidity and “providing institutional and retail investors with more opportunities to create sustainable long-term value”.
The statement said that after the sale, Geely will still hold 78.7% of Volvo’s shares. Geely previously held about 82% of Volvo’s shares and sold more than 3% of its shares.
Geely did not immediately respond to CNBC’s request for comment. When asked for comment, a Volvo Cars spokesperson referred CNBC to Geely.
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