China's No. 3 Carmaker Jumps on Go-Ahead for Biggest ChiNext Listing
Xu Wei
DATE:  Oct 14 2020
/ SOURCE:  Yicai
China's No. 3 Carmaker Jumps on Go-Ahead for Biggest ChiNext Listing China's No. 3 Carmaker Jumps on Go-Ahead for Biggest ChiNext Listing

(Yicai Global) Oct. 14 -- Shares of Dongfeng Motor Group surged after China's third-biggest carmaker said that it has been given the green light to pursue the ChiNext board's largest listing to date.

Dongfeng Motor's stock price [HKG: 0489] rose 5.6 percent to HKD5.28 (US 68 cents) this morning, the highest since Sept. 17. The company went public in Hong Kong in December 2005.

The Shenzhen Stock Exchange has approved Dongfeng Motor's application to issue shares on the startup board with an aim to raise CNY21 billion (USD3.1 billion), the SZSE said on its website yesterday. That would be about CNY7 billion (USD 1 billion) more than Yihai Kerry Arawana Holdings, a pantry items maker, is looking to raise on the ChiNext.

The Wuhan-based car manufacturer would spend CNY7.7 billion of the proceeds on a CNY12.7 billion new-generation vehicle and advanced technology development project. It would pour CNY7 billion into a CNY11 billion high-end new energy passenger vehicle project. The remainder would supplement its working capital.

Dongfeng Motor sold over 2.9 million vehicles last year, occupying an 11 percent market share in its home country. The firm posted CNY104.7 billion (USD15.5 billion) in revenue and CNY12.9 billion in net profit that year.

Dongfeng Motor Corp. is the equity issuer's largest shareholder with a nearly 67 percent stake.

Editor: Emmi Laine

Follow Yicai Global on
Keywords:   Dongfeng Motor Group Co. Ltd., IPO,HK