(Yicai Global) Oct. 29 -- Volvo Cars, the Swedish premium carmaker owned by China’s Geely Holdings, joined the Nasdaq Stockholm today.

Volvo issued 377,358,490 common class B shares at SEK53 (USD6.20) each, raising SEK20 billion (USD2.35 billion) or SEK23 billion if the over-allotment option is exercised in full, it said in a statement.

“Our industry is changing, and we strive to lead that transformation,” said Chief Executive Hakan Samuelsson. “That is why Volvo Cars has an ambitious strategy to become fully electric by 2030 and is also undergoing a transition towards a more direct customer sales model. Today’s listing will help us get there.”

About 70 percent of the funds will be used to finance Volvo’s shift to full electrification with investments in battery supply in Europe, the United States and China, and investments in in-house production of electric motors, according to the prospectus released on Oct. 25.

The reminder will be used to expand capacity beyond 1.2 million cars, develop software and move to a more direct sales model.

Founded in 1927 and headquartered in Gothenburg, Sweden, Volvo was acquired by Geely from Ford Motors in 2010 for USD1.8 billion. Its sales have increased from 373,525 cars in 2010 to more than 770,000 cars during the 12 months ended June 30.

Geely owned 97.8 percent of Volvo and 99.9 percent of the voting rights before the listing.

Volvo’s revenue reached SEK141.1 billion in the first half year, up 26 percent from a year ago. It made SEK13.2 billion in operating profit, while its operating loss was SEK 989 million. The carmaker’s global sales rose 41 percent to 380,800 during the period.

In the electrification transition, Volvo has also launched an electric brand Polestar, in which it has a 49.5 percent stake. It also holds 30 percent of Lynk & Co. with Geely in a bid to attract urban youth.

Editor: Peter Thomas