Volvo Cars has announced it will evaluate the possibility of an initial public offering (IPO) on the Nasdaq Stockholm stock exchange later this year.

The company said a final decision to list will be subject to market conditions and there can be no certainty that a listing will proceed.

Volvo Cars said it also decided to extend chief executive Håkan Samuelsson’s contract to the end of 2022.

“A potential listing on the Nasdaq Stockholm stock exchange could create an opportunity for global investors to participate in our journey to become a leader in the fast-growing premium and intelligent electric vehicle segment while continuing to deliver on what customers expect from the Volvo brand,” said Samuelsson.

Volvo Cars has been owned by China’s Zhejiang Geely Holding since 2010. After any listing, Geely Holding would remain a major shareholder.

The company’s head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden.

Volvo Cars’ head office for APAC is located in Shanghai.

The company’s main car production plants are located at Gothenburg in Sweden, Ghent in Belgium, South Carolina in the US, and Chengdu and Daqing in China, while engines are manufactured in Skövde, Sweden, and Zhangjiakou, China, and body components in Olofström, Sweden.

“We have supported the transformation and growth of Volvo Cars for the last 10 years, enabling the company to become a true premium brand with improved profitability,” said Zhejiang Geely Holding chairman Eric Li.

“As we look ahead, Volvo Cars is especially well positioned to deliver continued growth and harness the full potential of electrification and the delivery of safe autonomous drive functions.

“After a potential listing, Geely Holding would remain a major shareholder.”