Wonder Auto Technology, Inc. closed on its recent offering of common stock and received $59.2 million in net proceeds. The company sold 6 million common shares at a price of $10.75, and may receive more proceeds if the underwriters exercise the overallotment option. The company plans on using the funds for general corporate purposes.
Wonder Auto Technology, Inc. also recently purchased Friend Birch Limited for $12 million. Friend Birch Limited is an automotive parts supplier that specializes in rods and shafts technology, and produces automotive mechanical springs and gas springs.
Wonder Auto Technology, Inc. is based in China and manufactures and sells automotive parts, including electrical parts, suspension products and engine accessories. Its most popular engine parts are alternators, starters, various suspension and engine related parts. Wonder Auto Technology, Inc. currently sells mostly to domestic Chinese auto manufacturers.
The Chinese auto industry has passed through the current recession with little effect, with estimated growth rates of 10% in 2009. Wonder Auto Technology, Inc. reported sales of $141.2 million in 2008, up 38% from 2007.