Dongfeng Group's IPO application for listing on the Growth Enterprise Market (GEM) has recently been accepted, according to information released by Shenzhen Stock Exchange.
The prospectus shows that Dongfeng Group plans to publicly issue no more than 957 million shares this time, with an estimated financing amount of 21.03 billion yuan ($3.15 billion).
This is the largest IPO to raise funds since the launch of the GEM, and it is also Dongfeng Group's first refinancing plan since its listing on the Hong Kong stock market in December 2005.
The funds raised this time will mainly be invested in new businesses such as new energy, intelligent connected vehicles, and autonomous driving.
According to the group's prospectus, the investment projects include the Lantu brand high-end new energy vehicle projects, new generation vehicles and forward-looking technology development projects. Among them, 7 billion yuan will be used for Lantu's new energy vehicle projects, accounting for one third of the funds raised.
Dongfeng Group is one of the top automobile groups in terms of domestic sales. The actual controller is the State-owned Assets Supervision and Administration Commission of the State Council, and the controlling shareholder is Dongfeng Motor Co.
