Fresh money from the stock exchange for Hengchi and Sono Motors

Evergrande Auto supplies itself with fresh money on the stock exchange at the start of production. Sono Motors wants to (or has to) do the same and is aiming for an IPO. However, the situation of both companies cannot be compared with one another. Hengchi 5 is already in the starting blocks, but Sono Motors' Sion still has a long way to go.

Hengchi 5
Hengchi 5

Act 1. Fresh money from the stock exchange. Evergrande car.

Evergrande Auto is already listed on the stock exchange (HK 0708). Evergrande Auto announced yesterday that it would place 174.83 million new shares at a discount of 18,89% to the previous day's closing price. The volume corresponds to 1,76% of the capital and will flush HK $ 500 million (approx. € 55,5 million) into the company's coffers. The fresh funds are needed to start production, which is scheduled to start in January.

The stock exchange responded in a friendly manner to the announcement and the share closed trading with a slight gain. The positive trend continued today. According to information from circles close to Evergrande, which has not been officially confirmed, pre-production of Hengchi 5 at the Tianjin plant has already started.

SaabBlog subscribers can get the first exciting details about Hengchi 5, prices and features on Friday Read monday.

Act2. Fresh money from the stock exchange. Sono Motors

Like Evergrande Auto, Sono Motors also wants to raise money on the stock exchange. However, things are completely different here, the Sion is still at least 1 year away from production. In addition, in contrast to the factory in Tianjin, the NEVS plant in Trollhättan is everything but not ready to start production.

The planned initial public offering includes 10 million common shares to be placed at a price between US $ 14 and US $ 16. Sono Motors would collect a maximum of US $ 160 million, not particularly lavish, in order to build up production, homologation and the start of the pilot series. The company's valuation would be $ 1,15 billion. In addition, the Munich-based company can sell another 30 million shares at the offer price within 1,5 days of the IPO.

Sono Motors currently has 16.000 pre-orders on the books, the value of which is only revealed when it comes to binding sales contracts. Because many contracts are already older. The story of the Sion is no longer fresh, the start of production has already been postponed several times. Not a good story for the stock marketers, because an older electric car concept is about as popular as a smartphone from 2016.

Although Sono Motors is only concerned with a relatively small amount, the competition is showered with billions on the US stock exchanges, the question is how well the IPO is received. Because in Stock exchange prospectus the imminent bankruptcy risk is pointed out several times, without fresh money the company would probably be insolvent in December.

This leaves the question of how speculative the stock really is and whether investors want to hook the rather narrow valuation.

5 thoughts on "Fresh money from the stock exchange for Hengchi and Sono Motors"

  • Prices and features ... I'm looking forward to it, even more to the first independent tests!

    Answer
  • I feared that (Sono Motors) ...

    It is well and right that investors should be made aware of risks that must become legal.
    However, a wide field remains open to create opportunities for investors, to actually have to create them, but then also to be allowed to apply ...

    This is where Sono Motors fails in its quest for capital to such an extent that I ask myself again whether one even wants to be successful?

    One must not forget that failure can also be very lucrative and convenient, depending on which person (s) in which position you take as your yardstick ...
    All others are of course pawn sacrifices.

    Answer
  • It will probably just be a miniature IPO and in the end not enough money will arrive in Munich. Larger investors get a nice discount on the new issue in such IPOs if they buy a block of shares. The bank also collects well and the rest goes to Sono Motors and is not enough in the back and front.

    Answer
  • Hasn't Sono Motors already had to collect money twice to get any further?

    Answer
    • In January 2020, Sono raised money on a larger scale from the community and donors and actually the company is collecting permanently. Finally, with reservations at the "old price", because the Sion is now more expensive. There is no one big donor who would bring the matter forward decisively. But which one in Munich avoids and prefers to rely on independence. I doubt whether this philosophy is helpful. Perhaps one would be better advised to allow one or the other compromise. Meanwhile, the stock market prospectus speaks of the first half of 2023 until the first car could roll to the customer. In my opinion, the project is running out of time.

      Answer

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