As China's new energy vehicle (NEV) industry sees a booming development, and the central and local governments strengthen their policy supports to the industry, many listed companies are seeking to issue additional stocks for increasing their investment in NEV business.
By now, ten listing companies have released their plans to raise money for NEV development via private placements. They are about to raise over 30 billion yuan in total, which will be used mainly in the power battery field and battery swapping and charging facility field.
The ten companies include BYD (002594.SZ), Lifan Industry (Group) Co., Ltd. (601777.SH), Ningbo Shanshan Co., Ltd. (600884.SH), Liaoning SG Automotive Group Co., Ltd. (600303.SH) and Shenzhen Clou Electronics Co., Ltd. (002121.SZ). BYD announced it would issue no more than 261.32 million shares to no more than ten specific objects, to raise 15 billion yuan at maximum.
The company will use the raised money to expand production capacity for Li-on batteries, strengthen NEV research and development, fund its working capital and repay bank loans. Liaoning SG Automotive Group Co., Ltd. announced it would raise no more than 617 million yuan to enter into the NEV power battery market, which also attracted Lifan Industry (Group) Co., Ltd. and Ningbo Shanshan Co., Ltd. to raise money via private placements.
Shenzhen Clou Electronics Co., Ltd. said it planned to raise about 3.08 billion yuan via private placement, and invest 576 million yuan in the smart cloud platform for charging network project. Lifan Industry (Group) Co., Ltd. also plans to invest 1 billion yuan in a smart NEV power station project.
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