Great Wall Motor Co., China’s largest sport utility vehicle maker, plans to raise as much as 16.8 billion yuan ($2.7 billion) in a private share placement to fund research and development of new-energy vehicles.
Great Wall’s board approved the proposal to issue as many as 387 million A shares in Shanghai at 43.41 yuan each to fewer than 10 securities investment and management companies, the company said in a statement to the Hong Kong stock exchange.
The maker of China’s best-selling SUV model is raising funds to pay for the research and development of new-energy vehicles. Policy makers are tightening fuel standards and promoting electric vehicles in order to control pollution and reduce a reliance on imported oil.
Great Wall boosted sales in the first half by 20 percent to 415,339 units, led by the 49 percent jump in demand for its Haval and M series SUVs. Great Wall will resume trading on July 13.