Great Wall, Lifan eye Shanghai listing
Great Wall Motor and Lifan Industry Group plan to sell shares in Shanghai as they joined Beijing Automotive Industry Holding Co (BAIC) and BYD in seeking funds to increase capacity and boost sales in the world's largest vehicle market.
Great Wall will sell no more than 122 million yuan-denominated A shares, about 10 percent of its enlarged capital base, its Hong Kong-listed unit said in a statement to the stock exchange.
The Hebei Province-based company did not disclose the amount it aims to raise but said the proceeds will be used to fund production of diesel engines and car parts, which it estimates need a total investment of 3.17 billion yuan ($473 million).
"Issuing A-shares will create new financing channels for the company in a bid to bolster the sustainable development and increase competitiveness," the statement said.
"It will also help consolidate the company's position in the auto industry."
Great Wall applied to list on the Shanghai bourse in 2008 but failed to obtain regulatory approval then.
In a separate statement, Chongqing-based Lifan said it will raise as much as 1.48 billion yuan from selling as much as 200 million shares, or 20 percent of its enlarged capital.
The funds will be used to build plant with an annual output capacity of 150,000 units.
Its application will be reviewed on Friday and if approved the firm is due to list as early as the end of this year.
BAIC Group set up BAIC Motor which it aims to list within two years.
BYD, backed by Warren Buffet, plans to sell 100 million shares on the Shenzhen bourse this year.