Chery Automobile Co. is planning a Hong Kong initial public offering that may raise about US$1.5 billion ($1.93 billion) as early as next month, according to people familiar with the matter, adding to what’s shaping up to be a busy September for new listings in the financial hub.
Deliberations are ongoing, and the size and timing of the deal could change depending on market conditions, the people said, asking not to be identified because the information isn’t public. China’s securities regulator said Wednesday it approved plans for Chery to issue as many as 698.9 million ordinary shares in Hong Kong.
A representative for Chery declined to comment.
After a summer lull, Hong Kong’s billion-dollar IPOs appear to be coming back. Zijin Gold International Co. could raise about US$2 billion in a listing in the city next month, while Sungrow Power Supply is planning a US$1 billion listing, according to IFR. More are on the way as there were over 220 applications to list in Hong Kong as of the end of July, according to the local securities regulator.
Hong Kong listings have raised more than US$17 billion this year, on course for their highest annual proceeds since 2021, according to data compiled by Bloomberg. Bloomberg Intelligence expects listing proceeds in the city to double to over US$22 billion this year.
State-owned Chery, which assembles Jaguars and Land Rovers in China, is the country’s biggest car exporter, generating revenue of 182 billion yuan (US$25 billion) in the first nine months of 2024.
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One thing that’s stood out about Chery’s offering was the absence of Wall Street banks among its arrangers. China International Capital Corp., Huatai Securities Co., GF Securities Co. and Citic Securities Co. are overall coordinators of the IPO.
