Gasgoo.com - The Changan Automobile Group has announced that its application to issue private A-share stocks has been approved by the State Council¡¯s State-owned Assets Supervision and Administration Commission, the Beijing Times reported today. Among the ten targeted investors, Changan¡¯s owner, the China Chang¡¯an Automobile Group, confirmed it will invest 2.4 billion RMB ($394.08m) in cash in its subsidiary, boosting its stock share to 39.17%.
Changan, which suspended trading for over a month, has established a per-share price of 18.7 RMB ($3.071) for its 320 million issued stocks, with the intended goal of raising 6 billion RMB ($985.19m) in capital. In addition to the 2.4 billion RMB ($394.08m) coming from owner China Chang¡¯an, the remaining 3.6 billion RMB ($591.12m) has already been confirmed by nine other companies. According to its development guidelines, half of all funding will go towards Changan¡¯s passenger automobile production, while the remaining half will go towards restructuring the company¡¯s engine production structure.
According to company sources, Changan currently boast a total annual production capacity of 540,000 vehicles, with major factories in Chongqing, Beijing and Hefei. The company expects its production and sales volumes to total nearly 800,000 units this year. Those figures are expected to increase to 900,000 units by the end of 2015 and 1.17 million units by the end of 2016. As a result, Changan needs to improve its current production capacity. Changan¡¯s application for a new 3.37 billion RMB ($553.35m) factory in Chongqing has already received official approval. The factory is designed to manufacture 240,000 vehicles a year, with the ability to produce 360,000 vehicles a year when running at full operation.