Chongqing Sokon, which has seen huge demand for its models following its partnership with Huawei, is now getting more capital to support its further growth.
Sokon said Tuesday that its private offering of A-shares raised net proceeds of RMB 2.568 billion ($397.6 million). The company plans to use RMB 1.622 billion of the proceeds for the development of new energy models and product technology upgrade projects for its Seres brand.
Sokon's offer price was RMB 46.00 per share, and the number of shares issued was 56,368,900. The price was 34% lower than its closing price of RMB 70.09 on Tuesday when the stock fell 6.5 percent.
The company raised gross proceeds of RMB 2.593 billion and net proceeds of RMB 2.568 billion after deducting offering expenses.
Sokon will strengthen the company's investment in several areas, including new energy vehicle technology, research and development and branding, to improve the comprehensive competitive strength of its products, the company said.
On April 20 this year, Huawei announced that it started selling cars, with the first model being Sokon's Seres SF5, which will enter Huawei's stores and flagship stores.
According to Seres, orders for the model have so far exceeded 10,000. Seres SF5 has started delivery at the end of May.
In the next three to five years, Sokon plans to develop six new energy models of Seres, including sedans and SUVs.
According to data released by Sokon, the company sold 27,959 vehicles in May, up 31.19 percent year-on-year. Among them, sales of new energy vehicles reached 3,038 units, up 75.51 percent year-on-year.
From January to May, Sokon sold 111,455 units of automotive products, up 26.07 percent year-on-year, and 10,631 units of new energy vehicles, up 110.81 percent year-on-year.