Changan lists 360m A shares

Gasgoo.com (Shanghai January 28) - Changan Automobile Group has officially listed 360 million A shares today, issued at 9.74 yuan ($1.482) each. Changan reported its total raised capital at 3.51 billion yuan ($534m). According to a prospectus released by the company, the funds will be used to finance expansion of Changan's automobile production lines, technology innovation, improving the manufacture of small-sized engines and own brand development. With the increased capital, the company estimates that it can increase production of its CM9, F202 and G401 subcompact cars by 220,000 units, while increasing its CC-series and CB-series engines' annual production capability to 120,000 units and 300,000 units, respectively.

In its performance report released yesterday, Changan estimates its 2010 net profit between 2.0 billion to 2.1 billion yuan ($304m-$320m), an increase of over 80% from 2009. The company's stock value meanwhile was between 0.86 yuan and 0.9 yuan ($0.1308-$0.1370). Changan said that 2010 was a complicated year for the automobile industry, and that Changan vigorously pursued opportunities to continue growth in the domestic market.