(Yicai Global) Dec. 14 -- Dongfeng Motor is seeking to raise an estimated CNY21 billion (USD3.2 billion) in a secondary sale of shares on Shenzhen’s Growth Enterprise Market, the largest public offering on the Nasdaq-style board so far.

The Wuhan-based automaker passed the review process and met the conditions for issuance, listing and information disclosure on Dec. 11, the GEM said in a statement.

Dongfeng Motor’s Hong Kong-listed stock [HKG: 0489] closed 5 percent higher today at HKD8.25 (USD1.06), after earlier soaring as much as 10.8 percent.

The state-backed company plans to use CNY7 billion of the proceeds from the new share sale in its Voyah high-end new energy vehicle project, CNY2.2 billion in its new NEV platform architecture, CNY1.8 billion in its autonomous driving project, and CNY1.3 billion in hydrogen fuel cell research and development.

The biggest listing in the GEM’s 11-year history was agribusiness group Yihai Kerry Arawana Holdings, which raised CNY13.87 billion this year.

During the listing review, Dongfeng was asked to explain the stability and sustainability of its cooperation with joint ventures, as well as the risks of its Voyah project in terms of technology, talent and competition in the industry.

Dongfeng makes and sells vehicles, engines and parts through JVs with France’s PSA Group and Japan’s Honda Motor and Nissan Motor. The company suffered large losses in the first half of this year from the Covid-19 pandemic.

For the whole year, it forecasts a 14 percent to 20.5 percent drop in net profit to between CNY10.2 billion and CNY11 billion on revenue of CNY105 billion to CNY110.4 billion, basically the same as last year.

The firm’s auto sales rose for an eighth straight month in November, gaining 2.7 percent to 362,300.

Editor: Ben Armour