SAIC Motor (600104.SH) is planning a private share placement to raise up to US$1.47 billion, the Wall Street Journal reported. The Shanghai-based auto maker, China’s largest, said shares would be priced at no less than RMB11.47 (US$1.68) per share, a 4.8% discount from the closing price of RMB12.05 (US$1.77) per share on June 18. SAIC shares have been suspended from trading since then. The company plans to use US$810 million to develop models under its own brands – particularly the well-received Roewe – and will spend US$176 million on commercial vehicles, US$397 million on a research and development center, and will also invest in a gear-parts project. SAIC said, without elaborating, that it would pursue other fund-raising measures to raise cash for other projects.
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