On October 14, FAW Jiefang Group Co., Ltd. (hereinafter referred to as “FAW Jiefang”) (code: 000800.SZ) successfully completed its first A-share refinancing since its restructuring and listing, raising 2 billion RMB. This was the largest market-oriented A-share refinancing project that has been approved and completed after the China Securities Regulatory Commission optimized refinancing regulations at the end of August 2023 (“market-oriented A-share refinancing projects” refer to those involving market-oriented investors, excluding projects issuing shares only to major shareholders, affiliates of major shareholders, directors, supervisors, senior management, or their affiliates). It also marked the first A-share equity financing by a subsidiary of China FAW in 25 years!
A Disclosure “Top Performer” with Swift Approval
After announcing the private placement project, FAW Jiefang utilized its qualification of two consecutive years of “A” grade ratings in information disclosure to obtain Shenzhen Stock Exchange’s classification review channel qualification, leading to approval within just two months after project submission. According to the latest information disclosure ratings released by the Shenzhen Stock Exchange, FAW Jiefang has achieved an “A” rating for four consecutive years.
Accurate Timing of the Issuance Window
After obtaining approval, FAW Jiefang proactively advanced the stock issuance process with keen market insights, maintaining communication with potential key investors, and seizing opportunities presented by favorable policies and improved market sentiment. By accurately timing the market window for issuance, FAW Jiefang achieved high-quality conversion of investor orders, resulting in oversubscription and a favorable issuance price, setting a new benchmark for recent refinancing projects despite a weak market environment.
“Patient Capital” and “Long-Term Capital” Actively Subscribed
As a leading commercial vehicle enterprise in China and the listed commercial vehicle business platform under China FAW, a large central enterprise directly managed by the State-owned Assets Supervision and Administration Commission (SASAC), this private placement by FAW Jiefang attracted significant market attention, marking the largest A-share refinancing in the commercial vehicle industry in the past three years. The National Manufacturing Transformation and Upgrade Fund, Jilin Province Equity Investment Fund, Jilin Province Yadong State-owned Capital, Jilin Changbai Mountain Private Fund, Changchun Equity Investment Fund, and other state-owned capitals actively participated, subscribing above the base price. This fully reflected the recognition of FAW Jiefang’s long-term investment value by “patient capital” and “long-term capital.” The successful completion of this private placement is of great significance in improving FAW Jiefang’s equity structure and revitalizing the capital market.
Empowering New Quality Productivity Development
In recent years, FAW Jiefang has been deeply committed to high-end products, new energy, and intelligent connectivity, steadfastly implementing the “15333” new energy strategy and continuing to lead in new energy and intelligent commercial vehicles. The successful execution of this private placement will further support FAW Jiefang’s new quality productivity development, strengthen its core competitiveness, and consolidate its leadership position. Leveraging this private placement, FAW Jiefang will accelerate its journey toward becoming a “China’s No. 1, World-Class” provider of green, intelligent transportation solutions.
