Chery Automobile has filed for a Hong Kong Stock Exchange listing, which “will not only help (it) establish a long-term capital replenishment channel but also benefit the activation of its equity incentive mechanism to maximise its value potential”, the company said in a statement.
According to Reuters, the company is seeking funds to develop new vehicles and technologies as well as to expand in global markets and improve domestic production facilities.
Neither the size of the initial public offering (IPO) nor when a listing might happen were revealed, but CICC, Huatai Securities and GF Securities were listed as joint sponsors.
Founded in 1997, Chery is China’s top passenger vehicle exporter (over 1.14 million units in 2024) and its No 2 carmaker (2.6 million units versus BYD’s 4.27 million in 2024). Its net profit jumped 59% to RMB11.3 billion (RM6.9 billion) in 2024’s first nine months, while revenue grew 68% to RMB182.2 billion (RM111.3 billion), Reuters reports, citing the filing.
Chery’s main export markets are Russia and Turkey, while also exporting to Cuba and Egypt. It said in the filing that it considers the risk of being sanctioned by the US for operating in Russia low.
One of the last few unlisted carmakers in China, Chery is the latest in a line of Chinese automotive companies seeking a Hong Kong listing. Geely’s up there; so is Xpeng and Dongfeng. Contemporary Amperex Technology Company Ltd (CATL), the world’s top battery maker, applied for a US$5 billion (RM22 billion) HK IPO last month.
Looking to sell your car? Sell it with Carro.
