Gothenburg-based automaker Volvo Cars, which is owned by China’s Zhejiang Geely Holding Group Co, has raised 5 billion Swedish crowns (429.03 million pounds) from a group of Swedish institutional investors in a step towards a listing of the Chinese-owned company.

“Today’s move is another step towards Volvo Cars’ long expressed ambition to act as a listed company,” the company said in a statement.

Pension funds AMF, the First Swedish National Pension Fund (AP1) and insurance company Folksam had bought the shares that could later be converted into listed ordinary shares.

The timing for an IPO is perfect. Volvo has flourished under Geely’s ownership, boosting sales and profits as well as building factories in China and the US as part of its ambition to challenge the German premium manufacturers. Lately speculations have surfaced more frequently that the the automaker was considering a listing. 

It plans to sell 800,000 cars annually by 2020 — a third of those produced in China — with 200,000 for domestic sale and the rest for export.

The company could also take advantage if the current bullish stark market sentiment, analysts say.