Chery goes public in biggest auto IPO in Hong Kong this year
Chery's IPO was priced at the upper end of its offering range, raising HK$9.14 billion ($1.18 billion).
- Chery's IPO pricing was set at the upper end of its offering range, raising HK$9.14 billion ($1.18 billion).
- At the opening of Hong Kong stocks on Thursday, Chery rose 11.22% to HK$34.2, with a market capitalization of HK$197.2 billion.
Chinese auto giant Chery Automobile (HKG: 9973) made its Hong Kong stock market debut today, marking the largest automotive IPO (initial public offering) on the Hong Kong exchange this year.
The company priced its IPO at HK$30.75 per share, at the upper end of its offering range, raising HK$9.14 billion ($1.18 billion).
At the opening of Hong Kong stocks on Thursday, Chery rose 11.22% to HK$34.2, with a market capitalization of HK$197.2 billion.
Founded in 1997 and headquartered in Wuhu, Anhui province, Chery ranks among China's largest automotive exporters.
It was also one of the last major unlisted automakers in China, as many of its domestic peers had already listed on mainland A-share markets or the Hong Kong Stock Exchange.
Chery Auto represents the core asset of Chery Holding, which also operates in financial services, real estate, and other sectors.
As early as 2004, the Anhui provincial government first promoted Chery's shareholding restructuring and initiated its listing plan. However, the listing process was subsequently forced to stall due to complex equity structures.
In February this year, Chery submitted its Hong Kong listing application, restarting its IPO plan. But the process later lapsed after failing to secure a listing hearing within six months.
In late August, Chery resubmitted its listing documents to the Hong Kong Stock Exchange and passed the listing hearing on September 7.
On September 17, Chery Auto commenced its public offering, ultimately achieving 238 times oversubscription.
The company plans to allocate about 35 percent of the IPO proceeds to R&D for passenger vehicles to further expand its product portfolio; about 25 percent to R&D for next-generation technologies; and about 20 percent for overseas market expansion and globalization strategies.
From 2022 to 2024, Chery Auto's revenue surged from RMB 92.6 billion ($13 billion) to RMB 269.9 billion, achieving a compound annual growth rate (CAGR) of 70.7 percent.
During this period, its net income rose from RMB 5.8 billion to RMB 14.3 billion, with a CAGR of 57.1 percent.
($1 = RMB 7.1322, $1 = HK$ 7.7788)
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