Geely-owned Volvo Cars intends to launch an initial public offering and list on the Nasdaq Stockholm stock exchange, in what would be one of Europe's biggest initial public offerings (IPOs) this year.
In 2018, Volvo Cars and Geely postponed earlier plans to float shares in the Swedish carmaker, due to trade tensions and a downturn in automotive stocks.
"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 and a potential partial sale of shares by Volvo Cars' main shareholder," the Sweden-based carmaker said in a statement on Monday.
It added that the first day of trading was expected to be in 2021 and that Geely would remain it biggest shareholder.
Sources told Reuters last month that China's Geely Holding was in advanced discussions with banks to list the Swedish company in the coming weeks, aiming for a valuation of about $20 billion.
Volvo Cars had previously said it was considering listing on the Stockholm stock exchange in the second half of 2021.