- This is not the message they wanted to leave now.

The message they had wanted to give was that there has been a lot of pressure, that the price ended up in the higher range and that the new share issue has been filled, says Sverre Linton, General Counsel at Aktiespararna.

The subscription price in Volvo Cars' IPO has been set at the absolute lowest in the range - SEK 53.

- It indicates that the interest was less, that the institutions have pushed the price, says Sverre Linton.

Fewer new shares

Volvo Cars' updated announcement ahead of the forthcoming IPO is that the price per share will be SEK 53, or a total value of SEK 163 billion.

The company had previously stated a subscription price range between SEK 53 and 68.

Hampus Engellau, vehicle analyst at Handelsbanken, says that investors were facing a complex valuation.

- There were different things to relate to, everything from Polestar being valued separately in a spac that will be relevant next year to Lynk & Co also having a separate valuation.

It was a bit more complex and it meant that you had to deal with three companies in terms of valuation.

The fact that the range was so large may have contributed to investors feeling uncertain about the valuation, Hampus Engellau believes.

The issue of new shares will be reduced to SEK 20 billion.

It was previously stated that the rights issue would draw in SEK 25 billion to the company.

In addition, the offer regarding how many shares will be traded freely on the stock exchange is changed, 16–11.9 percent based on the fact that it has been a higher figure in the past.

According to Joakim Bornold, savings economist at Söderberg & Partners, the so-called free float is at a record low for being a listed company.

It can have the effect that the shares are not enough and that it creates a price bubble for the share, he writes in a comment.

Extended registration period

The company states that it has received strong support from a group of large institutional anchor investors, including the First AP Fund, the Third AP Fund and the Fourth AP Fund.

"There has also been an overwhelming interest from the public in Sweden and the Nordic countries with over 90,000 reports to date," Volvo Cars writes in a press release.

In addition, the registration period for the public is extended by another day.

The first day for trading on the Stockholm Stock Exchange is now expected to be 29 October.