SAIC Motor completes non-public offering
SAIC Motor completed a $15 billion non-public offering to its major shareholder, core employees and six institutional investors on Jan 21, 2017. The company sold over 657 million shares at 22.8 yuan ($3.31) each.
Despite the recent economic downturn, the non-public offering was highly recognized by investors, with more than 40 institutions submitting quotations. SAIC’s core employees invested 1.1 billion yuan for the offering. The whole process finished over the course of one month, showing confidence from investors in SAIC’s innovative development.
SAIC intends to allocate 7.2 billion yuan of the raised funds into new-energy vehicles, expecting sales of 300,000 new energy passenger vehicles and 22,000 business vehicles by 2020. The company will also invest 2 billion yuan into customized business vehicle services, 1.9 billion yuan in internet-of-cars technology, 700 million yuan in intelligent driving, 700 million yuan in internet vehicles and 3.9 billion yuan in auto services and finance. The auto finance program is expected to generate 1.8 billion yuan of revenue and 540 million yuan of profit.
SAIC aims to improve its products, technologies, sales, financing, customer relationships and services to build a competitive advantage and offer investors stable returns.
In 2016, SAIC Motor continued to be a champion of sales, selling 6.49 million vehicles, up 9.95 percent from the previous year. The sales volume of passenger vehicles hit 322,000, increasing 89.2 percent, while commercial vehicle sales reached 46,000, a year-on-year growth of 31.6percent.