Shanghai (ZXZC)- GAC AION, the NEV-dedicated arm of GAC Group, has already completed a new round of capital increase with a total of 2.566 billion yuan ($403.51 million) raised, the NEV maker announced on March 17.

Of the aforesaid capital secured, 1.782 billion yuan ($280.224 million) were contributed by the equity incentive objects consisting of 679 employees with GAC AION and 115 R&D staff members of GAC R&D Center.

GAC AION said the move will help the company build a long-term incentive mechanism to retain talents, and establish a more market-driven corporate management structure and a more competitive shareholder architecture.

Upon completion of the latest capital increase, the registered capital of GAC AION will be increased to around 6.421 billion yuan ($1.01 billion) from 6 billion yuan ($943.515 million), according to a statement issued by GAC Group. Meanwhile, 93.45% stake in GAC AION will be co-held by GAC Group and its wholly-owned subsidiary GAC Motor, 4.55% belong to the aforementioned incentive objects, and the rest 2% are jointly controlled by three strategic investors.

Based on GAC AION's operation and development performance, its mixed-ownership reform and Series A financing will be launched to introduce new strategic investors. In the future, GAC AION will fully leverage the capital market to seek a proper moment for public listing and build an independent capital platform.