(Yicai) Nov. 20 -- Volvo’s shares plunged to a record low after its majority shareholder Zhejiang Geely Holding Group announced it would cut its stake in the Swedish automaker to fund its overseas expansion.

Volvo [ST: VOLV] closed 11.1 percent down at SEK36.29 (USD3.45) in Stockholm on Nov. 17, after earlier dropping over 14 percent to an all-time low.

Geely will sell about 3.3 percent of Volvo’s shares for about USD350 million to support the globalized development of its affiliated brands, the Chinese carmaker announced on Nov. 17. After the sale, Geely will still hold 78.7 percent of Volvo.

Zhejiang province-based Geely boasts multiple affiliated brands, such as Geely, Lynk, Zeekr, and Smart. New energy vehicle marque Zeekr is speeding up its overseas expansion and has already entered the European and Middle Eastern markets. Lynk and Smart are also accelerating their global positioning.

The share sale also aims to further improve Volvo’s value, increase its liquidity, and offer more opportunities to institutional and individual investors, Geely told Yicai.

Geely acquired 100 percent of Volvo for USD1.8 billion in 2010. The Swedish automaker went public on the Nasdaq Stockholm in 2021. After Volvo’s listing, Geely gradually reduced its shareholding ratio to 82 percent.

Volvo’s annual sales volume reached 330,000 in 2010. Last year, the firm sold about 698,700 units worldwide, achieving stable growth over the past decade.

Volvo’s business revenue soared to a record of SEK330.1 billion (USD31.4 billion) last year, with a corresponding operating profit of SEK22.3 billion (USD2.1 billion) and a profit margin of 6.8 percent.

Last month, Volvo sold 59,861 cars, up 10 percent from a year earlier. The figure for the Chinese market was 15,041 units, unchanged from the same period last year.

Editor: Shi Yi, Futura Costaglione