Changan Auto's $602M private placement approved

Chongqing Changan Automobile (000625) obtained approval from the China Securities Regulatory Commission (CSRC) for its plan to conduct an A share private placement, reports Securities Times.

Changan Automobile intends to raise up to four billion yuan ($602 million) through the private placement.

Funds raised will be invested in three projects, including a project to expand the production capacity of passenger buses to 220,000 units, an independent research and development project and a technical upgrading project for CC engines and CB engines, increasing the annual production capacity of CC engines to 120,000 units and CB engines to 300,000 units.

Changan Automobile expects to record revenue of 15 billion yuan and net profit of 600 million yuan from the three projects.