Geely Automobile Holdings plans to list its shares on the Shanghai stock exchange’s Nasdaq-style Sci-Tech Innovation Board, also known as the STAR market, according to local reports in China.
The automaker is controlled by privately-owned parent Zhejiang Geely Holding which is headquartered in Hangzhou in Zhejiang province.
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It is registered in the Cayman Islands, according to the corporate website, and is currently listed on the Hong Kong Stock Exchange.
The new listing is described locally as a positive move for the automaker as it will diversify its source of funding.
The move will also strengthen its links with mainland China, at a time when relations between the US and China are more and more strained.
Earlier this month, the US government imposed new operating restrictions on 33 Chinese companies and institutions on grounds of national security, while a further two dozen Chinese companies were added to this list.
Geely Automobile last week said its board had approved preliminary proposals for the issue of new RMB shares on the science and technology board of the Shanghai Stock Exchange.
It will be the first Chinese automaker to list on this board.
The company said in a filing the RMB share issue would not involve the conversion of existing shares and further discussions would take place on the size of the new share issue.
The money raised would be used for business development and general working capital for the company and its subsidiaries, according to Geely Automobile.
