- SAIC Motor recently completed a non-public offering and raised RMB 15 billion, according to Stockstar.com.
- SAIC Motor issued 658 million shares in the non-public offering at a price of RMB 22.8 per share.
Why It Matters:
- SAIC Motor’s controlling shareholder and employees purchased 118 million shares of the total 658 million shares comprising the non-public offering. The remaining 540 million shares were purchased by six institutional investors.
- SAIC Motor said that more internet companies are entering the automobile industry, and some employees of SAIC have been poached by these companies. Through the non-public offering, SAIC executed options with regard to 2,321 important employees in order to provide them with incentives and to strengthen their ties to the company.
- SAIC Motor said that the RMB 15 billion will be invested in the development of renewable energy cars, smart cars and fuel cells.