Tencents $10 million increase in Weilai Autos holdings increased by nearly 3percent after Weilai Trading

category:Finance
 Tencents $10 million increase in Weilai Autos holdings increased by nearly 3percent after Weilai Trading


At the beginning of this month, the company announced that it would issue 60 million ADSS at a price of US $5.97 (closing price on June 8). It is expected that the net income from the fundraising will reach US $344.2 million. In addition, the company granted the Underwriters an additional 30 day rights to purchase up to 9 million ADSS. Assuming the Underwriters exercise all the rights, the net income from the offering will rise to $396.2 million.

According to Weilai automobile, the proceeds from the IPO will be used in four aspects, of which about 30% will be used for research and development of products, services and technologies; about 15% will be used to develop the companys manufacturing facilities and supply chain; about 40% will be used for the companys sales and service network operation and development; and the rest will be used for general commercial purposes.

It is worth mentioning that Weilai automobile once again gets the support of Tencent, the old shareholder, whose voting right in Weilai automobile has reached 21.1%, second only to Li Bin, who continues to be the second largest shareholder of the company. As the companys gross profit margin is still negative, so far, the company has not achieved quarterly profit, and the companys book capital continues to be tight. The prospectus said that as of March 31 this year, the company had cash, cash equivalents and restricted cash of 2.048.2 billion yuan, and stressed that before the issuance of the new shares, the companys working capital and working capital were not enough to continue to operate within 12 months from the date of issuance. Our continued operation depends on our ability to obtain sufficient external equity or debt financing. In addition, the prospectus shows that as of March 31 this year, the total amount of long-term borrowings was about 1.0166 billion yuan, mainly including convertible notes and long-term bank debt. Source: Yang Bin, editor in charge of wall street news_ NF4368

It is worth mentioning that Weilai automobile once again gets the support of Tencent, the old shareholder, whose voting right in Weilai automobile has reached 21.1%, second only to Li Bin, who continues to be the second largest shareholder of the company.

As the companys gross profit margin is still negative, so far, the company has not achieved quarterly profit, and the companys book capital continues to be tight. The prospectus said that as of March 31 this year, the company had cash, cash equivalents and restricted cash of 2.048.2 billion yuan, and stressed that before the issuance of the new shares, the companys working capital and working capital were not enough to continue to operate within 12 months from the date of issuance. Our continued operation depends on our ability to obtain sufficient external equity or debt financing.

In addition, the prospectus shows that as of March 31 this year, the total amount of long-term borrowings was about 1.0166 billion yuan, mainly including convertible notes and long-term bank debt.