Beijing (ZXZC)- Chongqing Sokon Industry Group Stock Co., Ltd. (Sokon Group), the holding company of the auto brand, SERES, is planning to raise RMB7.13 billion ($1.125 billion) through private placement.

AITO M5; photo credit: AITO

According to its announcement, Sokon Group intends to use the funds to upgrade its electric vehicle and product platform R&D, facilitating intellectualization on its factory, initiating electric motor production line projects, constructing user centers, and supplementing the group’s working capital.  

Sokon Group said that the private placement represents the group’s determination in the new energy transformation. The company aims to enhance its core competitiveness within the industry, improving its production technique, and process quality.

Moreover, Sokon Group intends to develop six new electric vehicle models and upgrade its DE-i platform. The vehicle models include three high-end intelligent electric vehicles and three practical electric vehicle models. The project will cost the company roughly RMB4.75 billion ($479.43 million), with RMB4.31 billion ($680 million) from this private placement round.

In fact, Sokon Group was fairly active in financial plans in the past year. In June 2021, the group raised RMB2.59 billion ($40.86 million) through private placement. In October 2021, Sokon Group initiated an IPO at the Hong Kong Stock Exchange. However, according to another announcement made on January 26th 2022, Sokon Group has put the IPO plan on hold.