Fuyao to issue H shares in Hong Kong

Fuyao Group, the biggest vehicle glass manufacturer in China, announced that it is going to issue H shares on the Hong Kong Stock Exchange in a statement filed to the Shanghai Stock Exchange on Tuesday.

The scale of H shares will be no more than 18 percent of the total equity after expansion. The company's book-runner will receive an over-allotment option for less than 15 percent of the new shares.

The new stocks will be common shares priced at 1 yuan (16 cents) in public offering in Hong Kong and international placement.

All the proceedings, minus issuing fees, will be used for the construction of vehicle and float glass production bases, marketing and service networks, and research and development platforms in Russia, the United States, Europe or the rest of the Americas.

The fundraising aims to implement the company's going global strategy by enhancing its productivity and international profile.

Fuyao has issued a total of 2 billion shares up until now. It will add 440 million H shares apart from the over-allotment option.