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| Great Wall Motor to issue 300 mln H-shares |
| News Archive - Industry Headline - September news | |
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(ChinaKnowledge, Sept 29, 2006) Great Wall Motor Co. Ltd., China’s largest manufacturer of pick-up trucks and sports utility vehicles, has announced that it will apply to the China Securities and Regulatory Commission for permission to issue 300 million new H-shares. In a statement to the Hong Kong Stock Exchange on which it is listed, Great Wall Motor yesterday said that it is planning to issue no more than 300 million new H-shares, representing approximately no more than 114% and 31.77% respectively of the existing issued H-shares and all the shares of the company. The shares will be sold to professional and institutional investors solely through private placements, Great Wall Motor said in its statement. Proceeds from the proposed H-share sale will be used to finance several projects that the company has, namely the automobile rubber parts project, automobile engine parts project, automobile gearbox project, plastic automobile fuel boxes project, and a project making cast parts for automobile engines, and parts and components for gear boxes and brake systems. Great Wall Motor has not specified any amount for the pricing of the shares. However, the company did state in its statement that the issue price of the H-shares would not be less than 80% of the benchmarked price of the company’s shares. The determination of the benchmark price would depend on the closing price of Great Wall Motor’s shares on the Hong Kong Stock Exchange on the date of the relevant placing agreements, as well as on the average closing price of the shares for five days. source:ChinaKnowledge |
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