Bafang will be able to accelerate its already rapid progression having raised a total of $186 million / €168 million as part of its Shanghai Stock Exchange IPO yesterday.
30 million shares were released into the market under stock code 603489, accounting for 25% of the total share capital in the business. The shares opened at 43.44 Yuan per share and closed on day one up 43.99% to hit the daily trading limit of 62.55 Yuan.
The total fund raised is 1.303 billion Yuan (186m US-$ / 168m €), and the net fund raised after deducting issuing expenses is 1.238 billion Yuan.
“Bafang’s goal is to produce innovative and high-quality products for our customers that make a tangible contribution to their riding comfort,” said Chairman and Managing Director Qinghua Wang.
“After the completion of this equity investment project, Bafang’s production capacity of mid and hub motor systems for all kinds of pedelecs will be significantly increased. The global marketing network will be further developed, which is conducive to improving the company’s market share and brand influence. At the same time, our technical center will carry out targeted research & development and constantly improve the technical level of EPAC-related electric system products.”
With the funds raised by the IPO, investment will be made in a variety of areas including the production and construction of electric motors and control systems for EPACs (electrically power assisted cycles, also called “pedelecs”) and the projected production of Li-ion batteries.
Further investment will also be made in international marketing projects, replenishing the working capital and in the company’s technical center (R&D department) located at its headquarter.
Bafang has been busy setting up new operations globally, including most recently the $16 million, 6,000 square metre facility that CI.N reported on in September. Here two assembly lines, a service team, training centre and parts warehouse all operate side by side.
Bafang is the largest manufacturer of EPAC motors and components in China, with the highest export market share in China. The firm currently employs over 500 worldwide across five locations, including the branches in the USA and Germany.
The next issue of CI.N’s Trade Journal will carry an exclusive interview with European market director Jack Bransden who outlines the scope for expansion in the region. Registered UK bike businesses can subscribe free of charge here.