Hong Kong – Chinese automaker Chery Automobile will aim to raise up to HK$9.15 billion (S$1.5 billion) in a Hong Kong initial public offering, the largest deal of its kind for the city in 2025.
China’s biggest car exporter is offering 297.4 million shares at HK$27.75 to HK$30.75 each, according to its prospectus released on Sept 17. That excludes options to increase the size of the deal if demand is strong. Trading is set to begin on Sept 25.
Chery, best known for its Chery, Jetour and iCar brands, is seeking to tap investor appetite as it expands in the competitive electric and smart vehicle market.
It joins the barrage of Chinese firms going public in Hong Kong, where listing proceeds have soared to a four-year high.
Zijin Gold International could soon follow, with the mining giant preparing an IPO in the city that may fetch more than US$3 billion (S$3.8 billion), the biggest such deal in the world since May.
The largest listing in 2025 was from Chinese battery giant CATL as it raised US$4.6 billion in its offering in May.
Billion-dollar deals are trudging ahead in Hong Kong after a brief summer lull, building on a surge by Chinese companies that are raising cash to fund expansion abroad and meet capital needs in an intensifying artificial intelligence competition.
One thing that stands out about Chery’s offering is the absence of Wall Street banks among its arrangers. China International Capital, Huatai Securities, GF Securities and Citic Securities are overall coordinators of the IPO.
Cornerstone investors have subscribed for up to US$587 million in the Chery IPO, the prospectus showed.
Chery said it would use 35 per cent of the IPO proceeds for research and development on passenger vehicles of different models and further expand its product portfolio. A further 25 per cent would be spent on developing its next-generation vehicle in the next three years.
Chery said in July it would launch sales of its Chery brand in Britain with two new sport utility vehicle models, joining a growing number of Chinese automakers and brands competing in one of Europe’s most competitive car markets.
Chery launched its Omoda brand in Britain in August 2024, followed by its Jaecoo brand in January. REUTERS, BLOOMBERG
