Volvo Cars raises $500mn in step towards IPO

STOCKHOLM: Geely's Volvo Cars said on Tuesday it had raised 5 billion Swedish crowns ($531.83 million) in a step towards a listing of the company.

A group of Swedish institutional investors had bought newly-issued preference shares that would have "an immaterial dilutive effect" on Zhejiang Geely Holdings' current 100 percent ownership.

"Today's move is another step towards Volvo Cars' long expressed ambition to act as a listed company," the company said in a statement.

Rising sales and profits at Volvo Cars has led to speculation of a stock market listing over the past year, although the company had said earlier this month it had no immediate plans to list.