European car maker Volvo decreased its initial public offering Monday, pricing it at the bottom of its previously announced range between 53 kronor ($2.39) and 68 kronor ($3.07) per share.
The new pricing values the Swedish company at just over $18 billion, which is below the $23 billion it had expected at the top end of the expected range.
"We have been listening to the market, humbly," Volvo CEO Hakan Samuelsson told news agency TT, according to Reuters. He also said that he was "totally convinced" its new valuation will be enough.
The company now expects to raise about $2.3 billion from the offering.
Volvo expects to begin trading on Nasdaq Stockholm on Oct. 29, a day later than previously announced.
Volvo Cars said it will use the IPO funds to add car making capacity to almost double annual sales to 1.2 million vehicles by 2025.
“The proceeds raised from the IPO together with our strong balance sheet will secure the funding of our fastest transformer strategy and the delivery of our mid-decade ambitions,” Samuelsson said.
Earlier this month, Volvo recalled 460,769 older model cars, more than half of which were sold in the U.S., due to faulty airbags that can explode and send shrapnel into the cabin.
The company is aware of one rupture incident that resulted in a fatality due to the problem, according to documents filed with the National Highway Traffic Safety Administration.