Gasgoo.com (Shanghai July 30) - JAC released a non-public offering to raise no more than 4.5 billion CNY ($725 million) as the company launches alternative energy vehicles strategy following Lifan Motors and Great Wall Motors.
JAC (600418, SH) announced a private placement of releasing no more than 329.07 million shares at a price of no less than 13.88 CNY per share in order to raise a fund of no more than 4.5 billion CNY ($725 million), which will be invested into alternative energy passenger vehicles and its core components, high-end pure electric light truck and high-end commercial vehicle speed transmission.
After the private placement, JAC will invest 2.37 billion CNY ($381.57 million) to alternative energy passenger vehicles and its core spare parts. According to general plan, the company will have increased its capacity for alternative energy passenger vehicles to 100,000 units per year, and ones for engine batteries and motor control unit 150,000 units per year in two years. The company wishes to expand the sales share to 30% of alternative energy vehicles in the overall sales volume in 2025.
JAC determined to build alternative energy vehicles enjoy edge in high price-quality ratio, which will preferentially be offered in the first-tire cities and those area that have vehicle purchase limitations regulations. The rarely-touched market of public service field will be explored in the sales promotion. These three efforts might contribute to fast sales growth in the future.
