Geely to Raise CNY 20 Bn as SSE Accepts IPO Application
The funds raised will be used for new model product development, research and development, acquisition projects and supplementary working capital.
Geely Automobile is one step closer to becoming the first auto stock on Shanghai's Star Market.
Chinese Auto veteran Geely announced that the Shanghai Stock Exchange today confirmed and announced the firm's IPO.
The prospectus shows that the joint sponsors of Geely listing are CICC and Huatai United Securities. The types of shares issued are CNY ordinary shares (A shares) with a par value of HKD 0.02 per share. The number of issued shares is no more than 1.732 billion, which accounts for no more than 15% of the total number of shares after the issuance.
The company plans to use the raised funds on new model product development (CNY 8 billion), technology project research and development (CNY 3 billion), acquisition projects (CNY 3 billion) and supplementary working capital (CNY 6 billion).
At the same time, Geely said that if the actual funds raised in this issuance exceed the total planned investment in the above-mentioned fund-raising investment projects, the company will use the excess funds to supplement working capital or for the company's main business-related projects.
It is worth mentioning that in February this year, Geely announced that it would integrate its business with Volvo Cars and will plan to get listed in Hong Kong and Stockholm in the future. If all of this goes through, Geely will become the first auto company to be listed in Shanghai (A shares), Hong Kong (H shares) and Europe.