Dongfeng cleared for dual listing in Shenzhen to raise capital

Dongfeng Motor Group Co., a Hong Kong-listed state-owned automaker, said it was approved last week by the stock Exchange in the south China city of Shenzhen to issue shares on the bourse.

The move makes Dongfeng the second Hong Kong-listed Chinese automaker to secure a dual listing on stock exchanges in mainland China so far this year, following Geely Automobile Holdings. 

Dongfeng expects to raise 21 billion yuan ($3.2 billion) from the dual listing. The company said 9.2 billion yuan will be used to fund the development of new full electric vehicles including products for its newly created premium brand, Voyah. 

The remaining capital will be used to develop connected and autonomous driving technology, as well as hydrogen fuel cell batteries, according to the initial public offering application the company filed to the Shenzhen stock exchange in September. 

Dongfeng, based in the central China city of Wuhan, produces light vehicles and trucks. It also runs light vehicle joint ventures with Nissan Motor Co., Honda Motor Co., PSA Peugeot Citroen and Kia Motors. 

In September, Hong Kong-listed Geely Automobile Holdings, the largest private Chinese automaker, was approved by the Shanghai stock exchange to launch an IPO to raise 20 billion yuan.