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Caocao Mobility, the ride-hailing company owned by the founder and chairman of Geely Holding Group, has announced a private placement. The majority of the funds raised will be dedicated to expanding its robotaxi operations.
The company plans to issue up to 12 million shares at HKD32.46 (USD4.16) each, totaling HKD383 million (USD49.1 million). These new shares will represent roughly 2.1% of the company’s total shares. As of 2:30 p.m., trading saw the stock down 1.5%, reaching HKD34.98.
Private placements often lead to a temporary decline in a company’s share price due to dilution effects, as existing shareholders’ ownership stakes and earnings per share decrease if they do not participate in the offering.
Approximately 68% of the raised funds will go toward advancing Caocao’s autonomous vehicle services both domestically and internationally. About 22% will support the expansion of its corporate offerings, with the remaining 10% allocated for working capital and other general business needs.
The company believes the robotaxi market presents significant growth potential, expected to revolutionize transportation. As part of its strategic plan, Caocao has prioritized robotaxi development as a key focus for future growth.
It is working in partnership with Geely and other stakeholders to design a highly customized robotaxi model, featuring exclusive autonomous driving hardware and software. This model is scheduled for unveiling later this year, with plans to deploy a total of 100,000 robotaxi vehicles by 2030.
Last year, the company outlined a global expansion strategy, targeting the creation of five major operational hubs worldwide within the next decade, extending robotaxi services to 100 cities, and aiming for a combined gross transaction value of CNY100 billion (USD14.4 billion).
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