China Knowledge reported that Beiqi Foton Motor Co.,Ltd. China largest commercial vehicle producer in China has received approval from the China Securities Regulatory Commission to raise CNY 4.9 billion through a private placement.

The Shanghai-listed issuer plans to issue less than 700 million shares at a price of CNY 7.12 apiece to ten selected investors including Beijing Automotive Group or BAIC Group that will subscribe CNY 1.64 billion worth of shares.

Proceeds from the issue will be used to upgrade technology of multi-purpose vehicles or MPVs invest in an auto engine project in Beijing, fund a new plant in Changsha, Hunan Province and replenish working capital.