Volvo automobiles witnessed outdoors a Volvo dealership in Edmonton, on October 26, 2023, in Edmonton, Alberta, Canada.
Artur Widak | Nurphoto | Getty Illustrations or photos
Volvo Cars and trucks shares tumbled as considerably as 14% on Friday early morning right after its dad or mum business Zhejiang Geely Keeping Group began a sale of all around 100 million shares of the Swedish carmaker.
At 9 a.m. London time, shares of Volvo were down by 10.31% right after trimming some losses. Shares had fallen by as a great deal as 14% earlier in the working day and hit a record small, in accordance to Reuters data.
Geely claimed in a assertion previously on Friday that it would release even more shares of Volvo, which was in line with its lengthy-term system.
It said the transfer was intended to increase liquidity of Volvo and “present more opportunities to deliver sustainable long-time period worth for institutional and retail investors.”
Geely will nevertheless hold 78.7% of Volvo shares next the sale, the assertion claimed. Geely beforehand owned about 82% of Volvo, putting the marketed shares at above 3%.
Geely did not quickly responded to a CNBC request for comment. A spokesperson for Volvo Vehicles directed CNBC to Geely when asked for remark.