April 1 (Bloomberg) -- Pang Da Automobile Trade Co., an auto dealership based in China’s northern Hebei province, said it plans to raise as much as 3 billion yuan ($483 million) selling shares to expand its auto-leasing unit and pay debt.
The private placement of A shares, to be priced at no less than 4.76 yuan each, will be offered to as many as 10 institutional investors, Pang Da said in a statement to the Shanghai stock exchange today.
China’s auto dealer industry is moving into auto-financing and services as competition reduces profits from traditional sales channels, Pang Da said. Half of the money raised will be used for expanding auto-leasing services, it said.
Pang Da will also use part of the proceeds to expand Internet-based sales and reduce debts, according to the statement. The planned share sale is subject to regulatory approval, the company said.
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