SAIC to Raise Up to $2.4 Billion to Develop EVs, Own BrandsBloomberg News
SAIC Motor Corp., which has manufacturing joint ventures with Volkswagen AG and General Motors Co., said it plans to raise as much as 15 billion yuan ($2.4 billion) through a private share sale to develop its own brands and new-energy vehicles.
The Shanghai-based company will invest 4 billion yuan of the funds on building its own brands of cars and new-energy vehicles, and 1.8 billion yuan on new-energy commercial vehicles. Another 3 billion yuan will be used for financing-related projects. The automaker will also spend on developing fuel-cell cars and smart-driving technology, it said in a filing to the Shanghai stock exchange.
The share sale will be to SAIC’s parent company, SAIC’s employees, as well as investment firms, insurers, trust funds and qualified overseas investors that it didn’t identify.
SAIC joins Great Wall Motor Co. and Anhui Jianghuai Automobile Co. in raising funds to pay for research and development in order to compete with international carmakers and meet increasingly stringent emissions and fuel efficiency standards. For SAIC, developing its own brands also reduces reliance on its joint ventures with VW and GM for profits.
Its shares rose 5.8 percent at the close of trading on Oct. 8, before the stock was suspended pending the announcement.
— With assistance by Tian Ying, and Alexandra Ho