Chery Automobile (Qirui; 奇瑞), China's largest car exporter, is pushing for an initial public offering (IPO) on the Hong Kong securities market. Chery Automobile plans to raise $1.2 billion (about 1.6579 trillion won) through the offering.
Citing documents Chery Automobile submitted to the Hong Kong Stock Exchange, Bloomberg News reported on the 16th (local time) that Chery will offer 297.4 million shares at HK$27.75–30.75 per share (about 4,930–5,460 won). Trading begins on the 25th of this month.
The offering will be led not by Wall Street banks but by Chinese state-owned investment bank China International Capital Corporation (CICC), Huatai Securities, GF Securities, and CSC Financial, among others. Chery Automobile said it will use the proceeds to step up investment in research and development (R&D), overseas expansion, and factory upgrades.
Chery Automobile is the No. 1 exporter in China's auto industry. Last year's exports exceeded 1.14 million units, up more than 21% from a year earlier. In particular, sales in Europe reportedly surged by nearly 200% in the first half of this year from the same period a year earlier.