Shanghai (ZXZC)- GAC AION, the new energy vehicle arm of GAC Group, officially quoted its A-round strategic investor introduction project on the Guangzhou Enterprises Mergers and Acquisitions Services on August 26, allowing eligible investors to sign up to take part in the capital increase between August 26 and September 23, according to a post on GAC AION's WeChat account.

The automaker said it would dilute around 15% of its equity interests to introduce no more than 70 strategic investors. Each investor should pour at least 100 million yuan ($14.587 million).

Photo credit: GAC AION

The fresh round will reserve abundant capital for GAC AION's future sustainable development. The funds to be raised will be mainly used for new product development, R&D and industrialization of new-generation batteries and electric drive systems, production capacity expansion, as well as R&D and industrialized deployment of such core technologies as intelligent driving, intelligent cockpit, and energy ecosystem.

GAC AION said it took into consideration such factors as the asset appraisal prices with May 31, 2022 as the base date, the valuations of comparable companies, and investors' intents when it determined the quotation price.

According to the quotation price, GAC AION's valuation was around 85 billion yuan ($12.4 billion) before the A round. Upon completion of the financing round, which is expected to raise 15 billion yuan ($2.188 billion), the valuation is anticipated to exceed 100 billion yuan ($14.587 billion).