China’s sixth-largest automaker by sales, Guangzhou Automobile Group (GAC Group), prepares to sell up to 15 billion yuan ($2.2 billion) worth of shares to fund advancement of its green vehicle service, exclusive brands and factories, the company stated on Monday.
Chinese car manufacturers have invested billions in establishing electrical and petrol-electric hybrid automobiles at the instructions of the federal government, which sees green vehicles as a method to leapfrog worldwide rivals more skilled in standard fuel engines while likewise cutting significant pollution.
5 financiers associated with the personal positioning of GAC Group A-shares are generally managed by the federal government in the southern city of Guangzhou.
The car manufacturer, like a lot of domestic peers, is a state-owned business.
GAC Group stated in an exchange filing that the proceeds would be utilized in 10 tasks, with almost a 3rd of the funds to be invested in research and development of green energy vehicles and other innovation.
Other tasks consist of factory growth and enhancement and establishing a host of brand-new models for its GAC Motor.
The car manufacturer’s Shanghai-listed shares leapt 9.6 percent after resuming trading on Tuesday, closing the session up 6 percent. Trading had been stopped on October 18 pending the statement.
The recently provided shares represent approximately 10 percent of the car manufacturer’s outstanding stock.
In addition to making automobiles under an entirely owned brand name, GAC Group likewise makes automobiles through joint ventures with Toyota Motor, Honda Motor and Fiat Chrysler Automobiles NV.