Great Wall is ready for IPO in A-share market -- newspaper reports

Shanghai. January 9 (Gasgoo.com) - Great Wall Motor Company has filed an application to China Securities Regulatory Commission for listing in China’s A-share market and is still pending on official approvals, Beijing Youth Daily reported today.

 

The automaker plans to raise around RMB 2.7 billion (371 million) from its IPO in A-share market, the newspaper said, but it did not say when the A share IPO plan can become a reality.

 

About RMB 530 million ($72.6 million) raised in this initial public offering will be used in the research and development of automatic transmission system and RMB 156 million ($21.37 million) will be used to develop high-performance diesel engine technology.

 

In addition, RMB 743 million ($101.78 million) will also be used to fund a national technology center; RMB 363 million ($49.72 million) will be used to develop a high-end SUV model; and RMB 381 million ($52.19 million) will be used to develop a C class sedan model and RMB 580 million ($79.45 million) will be used to construct a vehicle proving ground.  

 

In 2007, the company sold 65,000 units SUVs, which represents 17.5 percent of China’s SUV market, and 54,000 pickups, which represents 30 percent in China’s pickup sales. In the same year, Great Wall exported 48,000 vehicles to100 countries and regions around the world.

 

In late 2003, the company raised HKD 1.7 billion ($218 million) via its initial public offering in Hong Kong and HKD 1.6 billion ($205 million) through its additional offerings in May 2007. The fund raised in Hong Kong IPO has been used for building new plants and developing new models.