UCAR Inc., 6/05/17
Beijing-based high-end car hire service Shenzhou Private Car (UCAR) (838006.NEEQ) has announced plans to raise RMB 2.4 bln, mainly to finance the development of its subsidiary O2O car trading platform Shenzhou Maimaiche (Tianjin) Technology Development.
UCAR will issue no more than 142.67 mln shares at RMB 16.8 per share. The shares will be purchased by PICC Asset Management, a subsidiary of People's Insurance Company of China (1339.HK), which will use cash to buy the newly issue shares.
The funds will go towards Maimaiche's development, primarily covering new vehicle procurement, storefront construction, marketing, and employee recruitment. As of April 2017, Maimaiche covered 122 cities and plans to increase its number of retail stores to between 300-500 within the next three years.
UCAR's 2016 annual report shows that Maimaiche had revenue of RMB 5.845 bln and net profits of RMB 35.8 bln.
Chinese media sites Sina Tech and DoNews are reporting that, in October 2016, Maimaiche issued a private offering of additional shares of about RMB 580 mln at RMB 16.67 - 17.00 per share, raising approximately RMB 10 bln in funds.