The preparations for listing Volvo Cars on the stock market have taken new, clear steps forward. Dagens Industri reports that CEO Håkan Samuelsson held an important meeting on Monday with major investors on the Stockholm stock market. “The meeting was a launch pad for important investors prior to a stock market listing later this year,” says a source with good insight.
During the meeting, Håkan Samuelsson highlighted the development of Volvo Cars’ new models and the company’s strategic goals.
The determining factor is whether Volvo Cars’ owner Li Shufu gives the go-ahead. According to DI’s sources there is an increasing likelihood that he will do so as there remains great interest from Swedish investors.
Yesterday Ericsson issued a profit warning resulting in its biggest plunge on the stock market in nine years as the company shed 20.2% and a share value of SKr 40 billion went up in smoke.
According to preliminary figures Ericsson’s operating results for Q3 were SKr 0.3 billion. Growth in turnover was 14% as network income fell by 19-30% during the quarter. Organic growth has fallen eight quarters in a row. The gross margin shrank from 32.2% to 28.4%. It has not looked this bad for Ericsson since just after the IT bubble burst.
Acting CEO Jan Frykhammar blames poorer Brazilians, Russians and Arabs in the Middle East after the fall in oil prices and a stronger dollar. European operators are also putting their purchases of Ericsson’s software on hold.
Enterprise minister Mikael Damberg did not want to comment on the stock fall but predicts a few tough years ahead for the company while Moderate leader Anna Kinberg Batra says it is a reminder of the pressure on Swedish industry.
The biggest mistake of Swedish technology entrepreneurs is to sell their companies. This is the message from Spotify founder Daniel Ek as Spotify prepares for a stock market launch. He says, “That is our biggest problem. All these companies could become enormous if they just kept doing what they are doing… I don’t intend to sell.”
Despite the Spotify founder’s appeal to Swedish politicians for better conditions for fast-growing digital companies, Daniel Ek is full of praise for Sweden as an incubator of tech companies: “The Swedish safety net encourages citizens to take risks, which in the long term leads to companies that can thrive and grow”.