Chongqing Changan New Energy Vehicles Technology Co., Ltd., Changan Auto’s new energy joint venture, planned to conduct an RMB5 billion capital increase through a public listing, which may be the final capital increase before its IPO.

Photo credit: Changan Auto

According to Changan Auto’s announcement, the company planned on raising RMB4.977 billion in this round, with an RMB126 million increase in its registered capital. As the largest shareholder of Changan New Energy, Changan Auto will contribute RMB1.36 billion. Among the rest of the investors, the four contributing the most are Bocom Boyu No.1 with RMB1 billion, SIAMC Management with RMB710 million, Chengyuan Private Equity with RMB700 million, and Wuhu Xinshi Xinhong Equity with RMB500 million.

After the capital increase, Changan Auto’s stake in Changan New Energy will be diluted from 48.95% to 40.66%, with Bocom Boyu No.1 at 7.71% stake, SIAMC Management at 5.47%, Chengyuan Private Equity at 5.4%, Wuhu Xinshi Xinhong Equity at 3.85%, Nanfang Industrial Equity’s stake will rise from 1.8% to 2.5%, Zhongjin Keyuan Equity at 1.54%, employee stock holding at 0.9%, Southern Industrial Intelligent at 0.85%, and finally Deqing Mixed-Ownership No.2 Fund at 0.77%. 

Notably, the said capital increase is viewed as Changan New Energy’s B-round of financing. On October 30th, 2021 Changan Auto announced that Changan New Energy was planning on raising RMB5 billion through public listing. Moreover, it is believed that this might be the last financing round before Changan New Energy files for an IPO.

Early on, Changan New Energy disclosed its IPO plan in an announcement. According to the plan, the company will initiate its foreign IPO process in 2023 or perform an exchange offer.