Chery Automobile, China’s second-largest carmaker, is planning an initial public offering (IPO) in Hong Kong to fund the development of new cars and technology, as well as support its international expansion.
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The company based in Wuhu, southeastern Anhui province, has appointed China International Capital Corp, Huatai Securities and GF Securities Hong Kong as joint sponsors for the IPO, according to a filing to the Hong Kong stock exchange on Friday.
The company, which sells cars under the Chery, Tiggo and Arrizo brands, did not reveal key IPO details such as the amount it plans to raise or the timetable.
In December, Bloomberg News reported citing sources that the Chinese carmaker could raise up to US$1 billion and seek a valuation of more than 100 billion yuan (US$14 billion).
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Chery’s international plans include entering right-hand drive markets and Europe, as well as “actively exploring market opportunities in North America, Japan, South Korea and other markets with high-entry barrier”.
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Founded in 1997, Chery is also the world’s 11th largest car company in terms of sales. Since 2001, it has exported more than 13 million cars to more than 100 countries.