• Voyah will list on the Hong Kong stock market via an introductory listing, while Dongfeng will complete its privatization and delisting to restructure its financing channels.
• Dongfeng has suffered from a prolonged period of undervaluation, with its stock market capitalization consistently far below its net asset value.

Dongfeng Motor Group plans to exit the Hong Kong stock market, while its high-end electric vehicle (EV) unit Voyah will list independently as part of a long-awaited restructuring.

The automotive giant announced in a Hong Kong Stock Exchange filing late yesterday that Voyah will list on the Hong Kong stock market via an introductory listing, while Dongfeng will complete its privatization and delisting.

Dongfeng H-share shareholders will receive HK$6.68 ($0.85) in cash and 0.3552608 Voyah H shares for each share.

The total value of the transaction is about HK$10.85 per share, significantly higher than the HK$5.97 share price of Dongfeng at the time of suspension on August 8.

An introductory listing is a method of applying for the listing of existing securities, primarily featuring no issuance of new shares or financing at the time of listing, but rather the listing of existing shareholders' securities for trading on the exchange.

In March 2022, Nio Inc (NYSE: NIO) also listed in Hong Kong via an introductory listing, without any new financing at that time.

Voyah is a brand announced by Dongfeng at the end of 2020, targeting the premium EV market, with its first model, the Voyah Free, launched in China in June 2021.

Dongfeng's plan to delist is due to its low valuation in recent years, with its stock market value consistently far below its net asset value.

Dongfeng has not conducted any equity refinancing since its listing and has essentially lost the financing function of its H-share listing platform.

In contrast to Dongfeng's low valuation, Voyah, as a premium new energy vehicle (NEV) brand, has maintained strong growth momentum in recent years and is one of the company's most valuable and high-growth assets, it said.

Voyah delivered 68,263 vehicles in the first seven months of this year, representing an 87.58 percent year-on-year increase, according to data compiled by CnEVPost.

($1 = RMB 7.8145)