STOCKHOLM: Swedish carmaker Volvo Cars, owned by Chinese group Geely, is seeking to raise $1 billion through the sale of preferred shares ahead of a potential initial public offering, the Wall Street Journal reported on Thursday.

The daily, quoting sources close to the negotiations, said Volvo Cars had “approached a number of Chinese investors about the share purchase, including sovereign wealth funds and private-equity firms.”

Volvo has made a remarkable comeback since 2010, when the loss-making carmaker was taken over by Chinese group Geely. In December, it succeeded in raising 5.0 billion kronor (529 million euros, $564 million) by selling preferential shares to three prudent Swedish investors: public pension funds AMF and AP1, and insurance group Folksam.

Media have speculated about a stock market launch for several months, with various sources speaking of a listing in either Hong Kong, Stockholm or London.—AFP