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Changan Automobile, one of China’s leading state-owned automakers, announced plans to raise approximately 850 million USD through a private share placement to its controlling shareholder, Changan Automobile Group. The funds will support various new energy vehicle projects focused on smart technology.
The company will issue new shares at CNY9.52 (about USD1.36) each, reflecting roughly a 20% discount compared to the previous day’s closing price. Following the transaction, the controlling shareholder’s ownership stake will increase from 35% to nearly 39%.
Proceeds from the offering will be allocated as follows: around CNY3 billion toward development initiatives for new energy vehicles, CNY1.5 billion for digital and smart platforms—including the Tianshu intelligent driving system and the smart cockpit platform—and CNY1.3 billion for the second phase of a global research and development center. An additional CNY170 million (approximately USD24.3 million) will fund the construction of a new vehicle testing and experimentation facility.
The second phase of the global R&D center aims to establish it as a premier hub for cutting-edge technology research and design, fostering innovations in intelligent vehicles and serving as an excellence center for automotive design.
The formation of the joint venture in late July is part of a broader strategy to boost vehicle production and sales, targeting five million units by 2030. The plan emphasizes that more than 60% of sales should come from new energy vehicles and over 30% from exports. The company aims to rank among the top 10 global automobile brands, according to its chairman.
As of mid-afternoon today, shares of the company rose slightly, closing at CNY11.91 (around USD1.70) in Shenzhen.
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