Chery Holding Group Adds JPMorgan Chase for Potential Listing of Automotive Unit in Hong Kong
CHERY Holding Group has added JPMorgan Chase to help arrange a potential listing of its automotive unit in Hong Kong next year, according to people familiar with the matter.
Potential IPO to Raise Up to US$1 Billion
The Chinese group has selected JPMorgan as it moves forward with an initial public offering of Chery Automobile, which could help it raise up to US$1 billion, the people said, asking not to be identified because the deliberations are private. A share sale could take place in the second or third quarter, the people said.
Chery Had Picked Other Arrangers Earlier
Chery had picked China International Capital, GF Securities and Huatai International as arrangers for a potential listing next year, Bloomberg News reported in October. The company may seek a valuation of more than 100 billion yuan (S$18.6 billion), people familiar with the matter have said.
Ongoing Considerations and Potential Changes
Considerations are ongoing and details such as timing, size and value could change, the people said, adding that other banks may also join the group of lenders arranging the share sale.
Company Profile and Expansion Plans
Chery Auto is one of China’s biggest car exporters and one of only a few not listed. It is a key asset for Chery Group, which is also involved in financial services and real estate. Founded in 1997, Chery Auto sells cars under brands Chery, Tiggo and Arrizo in China and abroad, according to its website. It has been looking to expand its production facilities globally, including in Europe. In Vietnam, it aims to start mass production in the first phase of an US$800 million plant by the end of 2025.
Conclusion
Chery Holding Group’s potential listing of its automotive unit in Hong Kong is a significant development in the company’s expansion plans. With JPMorgan Chase on board, the company is well-positioned to raise up to US$1 billion in its initial public offering.
FAQs
Q: Who has Chery Holding Group selected to help arrange its potential listing of its automotive unit in Hong Kong?
A: Chery Holding Group has selected JPMorgan Chase to help arrange its potential listing.
Q: How much could Chery Holding Group raise from its initial public offering?
A: Chery Holding Group could raise up to US$1 billion from its initial public offering.
Q: Who were the other arrangers picked by Chery Holding Group earlier?
A: Chery Holding Group had picked China International Capital, GF Securities and Huatai International as arrangers for a potential listing next year.
Q: What is the valuation that Chery Holding Group is seeking for its automotive unit?
A: Chery Holding Group may seek a valuation of more than 100 billion yuan (S$18.6 billion) for its automotive unit.
Q: What are Chery Holding Group’s expansion plans?
A: Chery Holding Group is looking to expand its production facilities globally, including in Europe, and has plans to start mass production in Vietnam by the end of 2025.
