Chery Automobile Aims for $1.2B Hong Kong IPO, Pricing Shares at Top Range

Reuters reports that Chery Automobile is poised to price its Hong Kong Initial Public Offering (IPO) at the upper end of its anticipated range, seeking to raise $1.2 billion. According to sources familiar with the matter, the automaker has set the share price at HK$30.75, a strategic decision aimed at maximizing capital from its public debut. The offering comprises 297.4 million shares, with the bookbuilding process initiated last week within an indicative price range of HK$27.75 to HK$30.75 per share. This HK$30.75 price point translates to approximately $3.96 per share. While Chery Automobile's IPO was initially anticipated to be the largest listing in Hong Kong this year, Zijin Gold International recently surpassed this milestone with a $3.2 billion deal. Despite this, Chery's offering remains a notable event, fueled by investor interest in companies pursuing expansion within the competitive electric and smart vehicle market. The company, which markets popular brands including Chery, Jetour, and iCAR, intends to allocate the raised capital to support its expansion initiatives. Trading of Chery shares on the Hong Kong Stock Exchange is scheduled to begin on Thursday. Chery Automobile did not immediately comment when contacted by Reuters for a statement regarding the IPO pricing.