Sokon Group bags RMB7.1 billion in private placement for EV advancement

Beijing (Gasgoo)- HUAWEI’s automaking partner, Chongqing Sokon Industry Group Stock Co., Ltd. (Sokon Group), announced the completion of an RMB7.13 billion-worth ($1.06 billion) round of private placement on July 15th.

SF5; photo credit: SERES

Sokon Group has issued 137 million shares through a private placement at RMB51.98 per share. By June 30th, 2022, a total of 17 investors have transferred the total RMB7.13 billion ($1.06 billion) into the account of CICC, the sponsor institution of the transaction. After taking out issuance expenses, Sokon Group has raised roughly RMB7.059 billion ($1.046 billion).

The 17 investors consist of players from various fields, including major brokers, public offering foundations, private funds, and an international investment organization, UBS AG. The biggest buyer of the round is GF Fund with 28.3571 million shares purchased. Notably, GF Fund also bought 26.087 million of Sokon Group’s shares last year, via two of its hybrid funds. The second largest buyer in the latest round is CITIC Securities with 22.2778 million shares bought.  

In addition, Ganfeng Lithium and Gotion High-tech also took a part in the subscription, but only Gotion High-tech entered the final 17 investors list.

Upon completion of the issuance, Sokon Group’s direct stake in the company will be diluted from 30.54% to 28.41%, which bears no change to the company’s controlling shareholder and actual controller. 

Sokon Group said that the proceedings would be put towards its electric vehicle R&D, product platform improvement, intelligent factory upgrades, electric-drive production line construction, users center building, and complementing its cash flow.