BEIJING (Bloomberg) -- Great Wall Motor Co., China’s biggest manufacturer of SUVs, said it will terminate plans for a 12 billion yuan ($1.84 billion) share sale after its stock slumped below the designated offer price.
The automaker had planned to use funds raised to expand development and production of new-energy vehicles and will now use its existing capital for those projects, the company said in a statement today. Great Wall said it won’t seek a new share placement within three months and will raise money using other channels if needed.
Great Wall joins an increasing number of companies revising or aborting share placements after a $5 trillion stock market meltdown in China last year. Since the beginning of this year, 63 companies have revised their plans to issue additional shares, according to Shanghai Securities News.
Automakers including Anhui Jianghuai Automobile Co., BYD Co. and Chongqing Changan Automobile Co. have drafted plans to sell additional shares to help fund the development of new-energy vehicles. The fundraising by the three companies are still pending.