Volvo automobiles seen outdoors a Volvo dealership in Edmonton, on October 26, 2023, in Edmonton, Alberta, Canada.
Artur Widak | Nurphoto | Getty Photographs
Volvo Automobiles shares tumbled as a lot as 14% on Friday morning after its dad or mum firm Zhejiang Geely Holding Group started a sale of round 100 million shares of the Swedish carmaker.
At 9 a.m. London time, shares of Volvo had been down by 10.31% after trimming some losses. Shares had fallen by as a lot as 14% earlier within the day and hit a document low, in line with Reuters knowledge.
Geely said in a press release earlier on Friday that it could launch additional shares of Volvo, which was in keeping with its long-term technique.
It mentioned the transfer was designed to extend liquidity of Volvo and “provide extra alternatives to generate sustainable long-term worth for institutional and retail traders.”
Geely will nonetheless maintain 78.7% of Volvo shares following the sale, the assertion mentioned. Geely beforehand owned round 82% of Volvo, placing the bought shares at over 3%.
Geely didn’t instantly responded to a CNBC request for remark. A spokesperson for Volvo Automobiles directed CNBC to Geely when requested for remark.