Carmaker Geely proposes yuan shares issue
Geely Automobile Holdings Ltd is proposing the issue of yuan shares and listing on the Shanghai Stock Exchange STAR Market.
The Zhejiang-based automaker said after deducting issuance expenses, the proceeds would be used for the group’s business development and general working capital.
The carmaker is currently listed on the Hong Kong Stock Exchange with a market capitalisation exceeding HK$120 billion (US$15.4 billion).
Geely said the proposed issue will be subject to further approval. If successful, Geely will become the first car manufacturer to list on the STAR Market.
Geely said the shares to be issued will not exceed 15 percent of the company’s issued share capital as enlarged by the issue and allotment of the yuan shares contemplated under the proposed issue. The shares will be new shares and no conversion of the existing shares will be involved.
It said that the final issue size of the yuan shares will be negotiated and determined by the board as authorized by the general meeting of the company, together with the sponsors and the underwriters subject to the issue size registered with the relevant securities regulatory authorities, the company’s needs and market conditions.