Chinese billionaire Li Shufu's Zhejiang Geely Holding Group is raising around $350 million selling part of its stake in Volvo Cars, responding to investor concerns about the automaker's limited free float.
Geely, which owns a web of automotive interests in Europe, offered approximately 100 million shares in the company at 37 kronor ($3.49) apiece, 9.4 percent below Thursday's closing price.
The sale of the 3.4 percent stake leaves Geely with a holding in Volvo of 78.7 percent, Geely said in a statement.
"The placing will increase the free float and further broaden the shareholder base of Volvo Cars. Proceeds received by Geely Holding are intended to be used to support business development within the group," it added.
Geely said it will continue to support Volvo. None of the cash from the share sale went to Volvo.