BAIC Bluepark to Privately Raise CNY5.5 Billion for Electric Vehicle Projects

BAIC Bluepark New Energy Technology, the new energy vehicle arm of China’s state owned carmaker, is set to raise CNY5.5 billion (USD 788.8 million) via a private placement, with proceeds to go to various electric and automatic driving vehicle projects to hone the competitiveness of its high-end Arcfox electric vehicle marque.

Its major shareholder BAIC Group and two of its units plan to buy 39 percent of new shares worth CNY2.137 billion the company will issue, the Beijing based electric vehicle maker said in a statement it sent to the Shanghai Stock Exchange yesterday.

BAIC Bluepark [SHA:600733] closed up 3.01 percent at CNY7.19 (USD1.03) at lunch.

Other investors in the private placement are as yet undetermined, it added.

The firm will also apply the funds raised to develop its data system, improve its fifth-generation wireless internet connectivity and automatic driving technology, and develop a plug-in power cell system, as well as recharging working capital, it said.

BAIC launched its Arcfox brand vehicle as early as 2016, but only start to pre-sell its first mass produced model in April.

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