(Yicai Global) Nov. 30 -- Guangzhou Automobile Group’s stock jumped after the Chinese automaker said it will increase the registered capital of GAC Aion New Energy Vehicle to CNY6 billion (USD940 million) as part of an asset reorganization plan and look at taking the marque public in the future.

After jumping as much as 5.9 percent earlier today, GAC’s shares [SHA: 601238] ended 4.4 percent higher at CNY16.41 (USD2.58) each.

Under the plan, the group will inject CNY7.4 billion of cash into Aion, while its passenger car company GAC Motor will add CNY3.6 billion in physical assets, Guangzhou-based GAC said in a statement late yesterday. Aion will pay CNY5 billion in cash for the new energy vehicle-related assets of GAC R&D Center and GAC Motor and take on their liabilities.

After the reorganization, GAC Group will remain the sole shareholder of GAC Aion, whose registered capital will rise to CNY6 billion from CNY1.4 billion now.

GAC Aion will further promote its employee stock ownership plan, bring in strategic investors, and actively pursue an initial public offering at an appropriate time, its parent said. The brand will also create more complete business and capital structures and enhanced development capabilities, which will help set up a market-oriented independent operational ability.

Founded in July 2017, GAC Aion has brought out various all-electric models since the launch of the first one in April 2019. It sold 90,826 units in the first 10 months of this year, 60,033 last year, and 42,003 in 2019, according to yesterday’s statement.

Editor: Futura Costaglione