Chery's Ambitious IPO Launch

In a bold move signaling a bustling season for major listings, Chery Automobile, China's largest car exporter, is gearing up to raise up to HK$9.1 billion (approximately S$1.5 billion) through an initial public offering (IPO) in Hong Kong.

Share Details and Trading Start Date

The company plans to offer 297.4 million shares priced between HK$27.75 and HK$30.75 each, with trading scheduled to kick off on September 25. This IPO could see an increase in size if demand surges, indicating strong investor interest.

A Wave of Chinese Listings

Chery is not alone in this venture; it joins a growing list of Chinese companies racing to list in Hong Kong, where the amount raised has skyrocketed to a four-year high. Another notable contender, Zijin Gold International, is preparing for an IPO that could surpass US$3 billion, potentially becoming the largest deal globally since May.

Revitalizing the Market After Summer Lull

This surge in billion-dollar deals marks a significant recovery for the Hong Kong market after a brief summer lull, as Chinese firms seek to bolster their finances for international expansions and the fierce competition in artificial intelligence.

Unique Financing Strategy

Interestingly, Chery's offering stands out due to the absence of major Wall Street banks in its underwriting team. Instead, the IPO is being coordinated by China International Capital, Huatai Securities, GF Securities, and Citic Securities.

Future Growth Plans

Chery, which has the distinctive capability to assemble luxury brands like Jaguars and Land Rovers in China, aims to invest the proceeds from this IPO in advancing its research and development, expanding internationally, and upgrading its manufacturing facilities. Stay tuned as this IPO unfolds—it’s a game-changer for both Chery and the growing electric vehicle market!