(Yicai) Dec. 30 -- Changan Automobile, one of China's three major state-owned carmakers, said it plans to raise CNY6 billion (USD850 million) through a private placement of shares to its controlling shareholder Changan Automobile Group to finance multiple new smart new energy vehicle projects.

The new shares will be issued at CNY9.52 (USD1.36) apiece, or about a 20 percent discount on their closing price yesterday, Changan Auto announced late on the same day. After completion, Changan Automobile Group's stake will increase to almost 39 percent from 35 percent, it noted.

From the proceeds, CNY3 billion will be used for NEV development projects, CNY1.5 billion for digital intelligence platforms, such as the Tianshu intelligent driving system, smart cockpit platform, and related tech development, CNY1.3 billion for building the second phase of a global research and development center, and CNY170 million (USD24.3 million) for a new vehicle testing and experimental base project, Chongqing-based Changan Auto pointed out.

The global R&D center's second phase aims to build it into a world-class hub for advanced tech research and design capabilities, creating a source of innovative technologies for intelligent vehicles and a center of excellence for car design, Changan Auto noted.

Changan Automobile Group was established at the end of July, aiming to increase vehicle production and sales to five million units by 2030, said Chairman Zhu Huarong. NEV sales should account for over 60 percent, while more than 30 percent of autos should be sold overseas, striving to become a top 10 global car brand, Zhu stressed.

Shares of Changan Auto [SHE: 000625] climbed 0.1 percent to CNY11.91 (USD1.70) as of 2.30 p.m. in Shenzhen today.

Editor: Martin Kadiev