Hong Kong-listed Dongfeng Group attempts to go public on ChiNext for developing new NEV brand

Shanghai (Gasgoo)- Dongfeng Motor Group Company Limited (Dongfeng Group), a Hong Kong-listed company engaged in auto-related businesses, said on July 27 it intends to file for an initial public offering of RMB ordinary shares and go public on the Shenzhen Stock Exchange's ChiNext Market.

According to the announcement, Dongfeng Group plans to issue not more than 957 million A shares for the domestic listing with par value of 1 yuan per share. The RMB shares to be issued shall not exceed 10% of the company's issued share capital upon completion of the A share issuance and exclude any possible shares to be issued based on an over-allotment option.

(Photo source: Dongfeng Motor's WeChat account)

After deducting the issuance expenses, the proceeds of the A share issuance are expected to be used for the premium new energy PV project under its all-new brand “VOYAH”, the R&D of next-generation automobile and cutting-edge technologies, the construction of digital platforms, and the replenishment of working capital, said Dongfeng Group.

(Photo source: Dongfeng Motor's WeChat account)

The automaker announced on July 17 its all-new premium EV brand dubbed “VOYAH”(in Chinese, "Lantu") with the logo unveiled in the meantime.

“VOYAH”, the homophone of “blueprint” in Chinese, is positioned as a premium smart EV brand that completely eliminates range and charge anxiety for drivers. According to You Zheng, deputy general manager of Dongfeng Motor Corporation (Dongfeng), the newborn brand is fire new in such aspects as strategy, organization mechanism, business model and operational team.

Dongfeng said earlier this month it was going to launch in mid-July the "h" brand, namely, “VOYAH”, that focuses on premium new energy PVs.

Dongfeng's "h" business unit was founded in April 2019 for the development of "h" brand.

Reportedly, the "h" brand will inherit Dongfeng Renault's Wuhan plant, which will be renovated later. The plant has to-day featured annual capacities of 150,000 complete vehicles and 50,000 engines.

The state-owned automaker is operating four self-owned PV brands—Fengshen, Fengguang, Fengxing and Venucia, most of which are priced below 150,000 yuan ($21,425). “With the consumption upgrading in China's automotive marketing, the share of mid-/high-end vehicles priced between 200,000 yuan ($28,566) and 350,000 yuan ($49,990) is growing rapidly, and this is the only market where Dongfeng's electrification and intelligent connectivity technologies can be developed with a proper cost effectiveness,” said You Zheng.