The funds raised from the IPO will be used to fund the company’s expansion plans.

Volvo Cars AB has cut its initial public offering by a fifth, becoming the latest European company to pull out of stock markets roiled by rising energy prices and supply chain delays.

Volvo’s Chinese parent, Zhejiang Geely Holding Group Co, is selling stock to raise approximately 20 billion crowns ($2.3 billion). It also decided on a stock price of 53 kroners, which was near the bottom of the company’s initial range.

Volatile markets scare away potential investors.

Volvo Cars plans to sell only all-electric vehicles and build a battery plant in Europe by the end of this decade. By 2025, the IPO proceeds will be used to increase car production and sales to 1.2 million vehicles.

“The proceeds from the IPO, combined with our strong balance sheet, will fund our strategy to rapidly transform and realize our ambitions for the middle of the decade,” CEO Hakan Samuelsson said in a statement.

Investors were concerned that under the current plan, Geely would control nearly all of Volvo’s voting rights, so the share structure was changed to slightly reduce Geely’s control. According to Volvo, the free float under the reduced listing plan would be 17.9%.

The revised listing is still a win for Gely Holding, which bought Volvo from Ford eleven years ago for $1.8 billion.