Automotive industry – Volvo’s sister wants to go public – economy

From China via Sweden to the United States: this is the path of the still largely unknown but already quite successful automotive brand Polestar. It was only invented a few years ago as a luxury electric sister to Volvo, which is why cars are mainly developed in Gothenburg. However, they are built in China, which also makes sense, since the Chinese group Geely around businessman Li Shufu is behind Volvo and Polestar. And the result is convincing: critics are enthusiastic, as are most of Polestar’s investors, such as actor Leonardo DiCaprio.

Now this success story must be taken to a new level: the brand, which was only created in 2017, wants to go public in New York. Polestar will be valued in the transaction, including debt, at around $ 20 billion, the company said on Monday. To this end, Polestar is merging with investment firm Gores Guggenheim owned by US billionaire Alex Gores and will now be listed on the Nasdaq New York Stock Exchange as Polestar Automotive Holding.

The company could raise more than $ 1 billion in the deal if all Gores Guggenheim investors participate and do not take advantage of the option to buy back their shares. $ 250 million of the total will come from institutional investors.

A smart move, at least thinks automotive expert Ferdinand Dudenhöffer: “With Li Shufu, Geely Holding is run by an outstanding financial professional,” says the director of the Center Automotive Research. With the IPO, it is possible for Polestar to rapidly develop the new brand with significantly greater equity capital in order to assert itself against Chinese start-ups like Nio or XPeng, but also against Tesla or BMW and premium brands of the VW group. Indeed, the boss of Polestar Thomas Ingenlath, who was born in Krefeld, wants to start a significant expansion. Sports cars are currently available in 14 countries, 10,000 were delivered last year. In 2025, it should be 290,000.

And similar news could follow with the big sister these days as well: carmaker Volvo is reportedly keen to place shares on the Stockholm Stock Exchange. The problem could be announced later this month. A market cap of over $ 15 billion should be realistic. Regardless of the type of company, Geely Holding had bought Volvo ten years ago from American automaker Ford for $ 1.8 billion – and in an intercontinental effort, with the help of Volvo boss Hakan Samuelsson, it has restored its former strength.

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