Fuyao is planning a first-time share sale in Hong Kong where it will seek to raise as much as USD 951 million to pay for its USD 330 million auto glass plant in Moraine, in the former General Motors plant.
Fuyao Group, the parent of the company building the USD 330 million auto glass plant in Moraine, is making waves in Hong Kong so it can pay for its new plant.
Fuzhou, China-based Fuyao Glass Industry Group Co. plans a first-time share sale in Hong Kong where it will seek to raise as much as USD 951 million. The company’s IPO is expected to include 439.7 million shares at a little less than USD 2 each, and is the largest IPO in Hong Kong this year.
The financing will pay for one of the largest Chinese investments in the US. Fuyao is building an auto glass production facility as well as an after-market glass production facility in the former General Motors plant in Moraine. When it spins up operations, Fuyao Glass America Inc. will employ 1,550 in Dayton, as well as a glass production facility in Illinois.
Bloomberg, citing terms of the deal, said about 44% of the offering, or USD 368 million, has been set aside to eight cornerstone investors. This includes Hillhouse Funds, which is investing USD 100 million, and Genesis Investment Management, which is investing USD 80 million. The proceeds will help Fuyao pay for its new factories in Ohio and Russia.
Most of the USD 330 million investment comes in new equipment for the plant. The auto glass production side costs USD 200 million, while the after-market glass side costs about USD 131 million.
JobsOhio – the state’s private development arm – has agreed to more incentives with Fuyao than any other company in the state. To date, it has executed agreements for USD 10.6 million in grants for the company’s Moraine operations.
It’s also been has been incentivized with USD 700,000 in Montgomery County economic development funds, as well as USD 600,000 from Moraine city government. Fuyao also is receiving a discount on its commercial activity tax via the Ohio Tax Credit Authority.