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The automaker wants to "act as a listed company," but has not publicly committed to an IPO.

Volvo has raised 5 billion Swedish crows (~$533 million USD) in funding, while hinting at an initial public offering.

The investment is split between a group of three Swedish institutions including two pension funds and an insurance company. The newly-issued preference shares can be converted into listed shares "upon the majority stakeholder's decision," however the company cautions that at this time "no decision has been made."

"The detailed terms of the sale have not been disclosed, but the transaction will have an immaterial dilutive effect on the current 100 per cent ownership of Volvo Cars by Zhejiang Geely Holdings," Volvo said in a statement.

The share sale follows two bond sales completed earlier this year, starting with a 500 million euro (~$519 million USD) bond to global investors and another 3 billion SEK (~$320 million USD) sale to Swedish institutions in November.

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"Today's move is another step towards Volvo Cars' long expressed ambition to act as a listed company," the company says.

Sales are expected to reach record levels this year on strong growth in Europe, China and the US.