Hong Kong-Listed Dongfeng Motor Seeks Shenzhen IPO
What’s new: The board of Dongfeng Motor Group Co. Ltd. has approved a decision to list on Shenzhen’s ChiNext board, becoming the latest overseas-listed Chinese company to announce mainland listing plans.
In a statement announcing the news on Monday, Dongfeng said it will issue up to 957 million A-shares but did not disclose how much money it expected to raise. These additional shares will account for no more than 10% of the automaker’s new total share count.
The background: With its A-share issuance news, Dongfeng is following a trend for overseas-listed Chinese companies to list again at home, tapping recently relaxed rules.
Last month, Dongfeng’s rival Geely Automobile Holdings Ltd. announced a similar plan for a listing on Shanghai’s Nasdaq-like STAR Market.
Dongfeng says it plans to invest part of the money raised in the offering in new-energy vehicles. The company’s increasing emphasis on green cars comes as China’s overall automobile market has deflated over the past two years, hitting domestic brands such as Dongfeng have been especially hit.
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