(Hangzhou, 29th) Chinese EV maker Leapmotor announced it has conditionally agreed to issue 74,832,200 new shares to state-owned automaker FAW Group (First Automobile Works). Upon completion, FAW will acquire a 5% stake in Leapmotor at a subscription price of RMB 50.03 per share, raising total proceeds of about RMB 3.744 billion (approximately RM 2.159 billion).
Leapmotor noted that the subscription price represents a 10.71% premium to the company’s closing price last Wednesday (24th).
The company said it plans to allocate around 50% of the proceeds to research and development, about 25% to working capital and general corporate purposes, and the remaining 25% to expand its sales and service network while strengthening brand awareness.
Leapmotor added that the share subscription is a strategic investment by FAW, reflecting confidence in Leapmotor’s new energy and smart EV business as well as its long-term prospects, and laying the groundwork for future commercial and industrial cooperation between the parties and their affiliates.
