Beijing Electric Vehicle Co. (BJEV) is due to be listed on the Shanghai Stock Exchange following a massive $4.5 billion deal with industry giant BAIC Motor Corp, reports Bloomberg.
BAIC will use their public affiliate Chengdu Qian Feng Electronics to buy out BJEV in an asset swap deal, which will be the first state-backed clean-energy vehicle company to list on a mainland stock exchange.
The offering will give investors access to the leader of the world’s largest market for clean-energy vehicles. In 2017, BJEV sold 103,199 cars, and raised its market share to 23% from 15% in 2016.
Issuing shares will allow BJEV to raise funds for future expansion, a move being emulated by other state-backed manufacturing companies as Beijing plans to continue its transition towards cleaner-energy in China.