"Chery Automobile" Plans IPO in Hong Kong Worth $1.5 Billion

SadaNews - Chery Automobile plans to conduct an initial public offering (IPO) in Hong Kong that could raise approximately $1.5 billion as early as next month, according to people familiar with the matter, adding to expectations that September will be bustling with new listings in the financial hub.

The sources, who requested anonymity as the information was not publicly available, said discussions are still ongoing and that the size and timing of the offering may change depending on market conditions.

Approval from China for "Chery" to List

The China Securities Regulatory Commission announced on Wednesday that it had approved Chery's plans to issue 698.9 million ordinary shares in Hong Kong.

A representative for Chery declined to comment.

After a lull during the summer, it seems that billion-dollar IPOs in Hong Kong are making a comeback. Zijin Gold International is expected to raise around $2 billion in a listing in the city next month, while Sungrow Power Supply plans a $1 billion listing, according to news service IFR.

Hong Kong is set to see more listings, with the local securities regulator receiving over 220 listing applications by the end of July.

Listing Proceeds in Hong Kong

The proceeds from listings in Hong Kong have exceeded $17 billion this year and are on track to achieve the highest annual total since 2021, according to data collected by Bloomberg.

Bloomberg Intelligence forecasts that the IPO proceeds in the city will rise to over $22 billion this year.

Chery, a state-owned company that assembles Jaguar and Land Rover vehicles in China, is the largest automotive exporter in the country and achieved revenue of 182 billion yuan ($25 billion) during the first nine months of 2024.

A notable aspect of Chery's IPO is the absence of major U.S. banks among the underwriters for the deal. China International Capital, Huatai Securities, and Citic Securities are tasked with the primary coordination of the IPO.