(Yicai Global) Jan. 25 -- Chongqing Changan Automobile’s new energy vehicle subsidiary has secured CNY4.98 billion (USD789.8 million) in its most recent fundraising round as the firm gears up to go public on the Shanghai Stock Exchange’s Nasdaq-style Star Market by 2025.

Participants in the B Series included South Industry Assets Management, the Chengyuan Fund and the debts-equity swap investment fund under Bank of Communications, Chongqing Changan New Energy Vehicle Technology said yesterday. Some 97 core staff also invested CNY117 million (USD18.5 million) as part of a staff stock incentive plan.

After the financing, Changan Auto’s stake will be diluted to 40.66 percent from 48.95 percent, but it remains the largest shareholder.

Changan NEV, which was the first electric car subsidiary to be spun off from a state-owned carmaker in 2018, needs to strengthen its financing to cope with fierce competition, the Chongqing, southwestern China-based parent firm said yesterday. It is only by fundraising as an independent entity that Changan NEV can succeed in transforming itself into an electric auto manufacturer from a traditional carmaker.

Changan NEV sold 100,000 units last year, four-times the amount in the previous year, and is aiming for sales of 210,000 units this year, the firm said earlier. This should increase to 700,000 a year by 2025.

Changan NEV has raised CNY7.8 billion (USD1.2 billion) in two financing rounds so far, including the latest one.

Editors: Xu Wei, Kim Taylor