GELYF - Volvo Cars prices Friday IPO at low-end of anticipated range

Volvo Cars will offer shares at 53 Swedish Kroner ($6.17) each, at the low end of its IPO target range. The price would value the automaker at $18B, well below the $23B that the company had hoped to reach and the $25B that analysts thought was possible. The valuation underscores the fact that investors are not willing to pay a premium on traditional automakers as compared to electric vehicle startups. Despite having a fraction of the sales of Volvo, both Li Auto (LI +2.6%) and Xpeng (XPEV +7.8%) are worth more according to investors due to their ambitious electric vehicle plans. Shares of Volvo will begin trading on the Nasdaq Stockholm Exchange on Friday, Oct. 29. In other auto news, Tesla soared to all-time highs after announcing a deal to sell 100K of their electric vehicles to car rental company Hertz.

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Volvo Cars prices Friday IPO at low-end of anticipated range