Changan to raise 4 billion yuan for technology upgrade
Chongqing Changan Automobile Co. has received approval from the China Securities Regulatory Commission to raise capital for technology upgrade projects by issuing shares on the domestic stock market, the company said.
Changan, which is listed on the Shenzhen stock exchange, expects to raise 4 billion yuan ($606 million) by issuing up to 465 million shares.
The funds will be used to upgrade the technology of its production lines, develop small engines and strengthen its R&D, Changan said in a statement.
Changan has a passenger vehicle joint venture with Ford Motor Co. and Mazda Motor Corp. in the southwest China city of Chongqing. It also builds its own-brand cars and micro-commercial vehicles.
In the first 11 months, Changan sold 1.0 million cars and small commercial vehicles, up 32 percent from a year earlier, according to J.D. Power.
Changan is China's second largest micro-commercial vehicle manufacturer. The largest producer in that segment is SAIC-GM-Wuling Automobile Co., a joint venture between Shanghai Automotive Industry Corp., General Motors and Liuzhou Wuling Automobile Co.
