On June 1, SST Qianfeng announced that it has been approved by China Security Regulatory Commission to issue stock shares to acquire 100% stake of BAIC BJEV.
This means that BAIC BJEV's back-door listing has been approved by China Security Regulatory Commission, and will be China's first listed pure electric vehicle maker soon. However, the phase-out of subsidies will be a tough issue that will challenge BAIC BJEV after it is listed on the stock exchange.
According to the approved files, SST Qianfeng will replace its whole assets and debts to BIAC BJEV, issue stock shares to buy 100% stake of BAIC BJEV, and raise supporting funds worth of RMB 2 billion. Specifically, BAIC BJEV will inject RMB 28.85 billion in SST Qianfeng. After exempting the RMB 187 million worth of SST Qianfeng's total assets and debts, BAIC BJEV only needs to inject RMB 28.669 billion to SST Qianfeng. SST Qianfeng will issue 761 million shares with each share of RMB 37.66 to 35 BAIC BJEV's shareholders, including BAIC Group.
Xu Heyi, chairman of BAIC Group said that BAIC BJEV can be listed on the stock exchange in June if everything goes smoothly, and the listing can be finished in as early as in July. And the listing information was also confirmed by the relevant person of BAIC BJEV's brand department.
BAIC Group will see the successful listing of various subsidiaries, including BAIC Motor and Foton Motor, after BAIC BJEV is listed on the stock exchange. Xu Heyi also exposed that BAIC Group will strive to list its whole auto businesses on both A-share and H-share markets.
