Caixin
Sep 14, 2022 05:28 PM
TECH

Dongfeng’s EV Unit Seeks to Bring In New Investors

What’s new: Voyah, a premium electric-vehicle brand launched by state-owned Chinese automaker Dongfeng Motor Group Co. Ltd., is embarking on its first public fundraising, which aims to bring multiple strategic investors to its board.

Voyah said that no more than 15% of its equity will be held by the strategic investors after the placement, according to a filing Tuesday to the Shanghai United Assets and Equity Exchange. The firm did not specify a timetable or how much it aims to raise in the share sale.

After the deal, Dongfeng Motor will remain the controlling shareholder of Voyah with no more than 77% of its equity, while Wuhan Woya Enterprise Management Consulting Partnership will own the remaining shares, the filing said.

The proceeds will be spent on boosting research and development capabilities, building digitized platforms and enhancing production capacity, according to the filing.

What’s the background: Established in July 2020, Voyah is currently 89.66% and 10.34% controlled by Dongfeng Motor and Wuhan Woya, respectively. The firm has rolled out two models since its launch — the Voyah Free and the Voyah Dreamer. Both models are available in full electric and the range-extended versions. There are plans to bring a third model to the market by the end of this year. As of the end of August, Voyah has cumulatively delivered 17,891 vehicles.

In the first half of 2022, Voyah reported a net loss of 737 million yuan ($106 million) on revenue of 1.9 billion yuan, according to the Tuesday filing.

Voyah is the latest in a series of Chinese electric-vehicle makers seeking external investment to fund their expansion. Last month, GAC Aion, the electric-car subsidiary of state-owned Guangzhou Automobile Group Co. Ltd., put 15% of its equity on the Guangdong United Assets and Equity Exchange, seeking as many as 70 investors.

Contact reporter Ding Yi (yiding@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)

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