Shanghai (ZXZC)- Shenzhen Stock Exchange said on October 13 it has accepted the application submitted by Dongfeng Motor Group Company Limited (called “Dongfeng Motor” for short), for going public on the ChiNext stock market.

Logo of Dongfeng Motor

Dongfeng Motor, which has already been listed in Hong Kong, hopes to raise 21.033 billion yuan ($3.132 billion) from its domestic IPO. China International Capital Corporation Limited (CICC) serves as its sponsor.

Dongfeng Motor announced in this year's July its plan of returning to A shares and being listed on the ChiNext Market of Shenzhen Stock Exchange. The company noted that the domestic IPO is carried out to further improve its management structure and complete a financing platform at home and abroad.

Logo of VOYAH

The proceeds from the financing will be deployed to research and develop the premium new energy PVs under an all-new brand (namely, “VOYAH”), the next-generation automobiles and forward-looking technologies, and supplement working capital.

Of those, 11 billion yuan ($1.638 billion) is set to be plowed in the “VOYAH” project and 8.8 billion yuan ($1.31 billion) will be mainly used to develop an all-new NEV architecture, autonomous cars and hydrogen fuel cells.

For the first half of 2020, Dongfeng Motor's revenue reached 50.576 billion yuan ($7.53 billion), up by 4.39% from a year ago. Nevertheless, its first-half net profit attributable to the company's equity holders tumbled 64.49% year on year to 3.018 billion yuan ($449.361 million).

Bai Yiyang, an analyst at CMB International, said Dongfeng Motor's return to A shares is favorable to the company in removing the hurdle of raising money at home and abroad, and share in the recent benefits of NEV-related market sentiment in capital market.