Chery Automobile Co. is preparing for an initial public offering in Hong Kong that could raise about US$1.5 billion (RM7.1 billion) as early as next month, according to people with knowledge of the matter. If completed, the deal would add to what’s shaping up to be one of the busiest Septembers for new listings in the city.
A Chery Automobile Co. Jaecoo J7 electric vehicle.
The plan is still under discussion, and both the final size and timing of the IPO may shift depending on market conditions, the sources said, asking not to be identified as the information remains private. China’s securities regulator confirmed on Wednesday that it has approved Chery’s proposal to issue up to 698.9 million ordinary shares in Hong Kong. Chery declined to comment on the development.
The move comes as billion-dollar IPOs make a comeback in Hong Kong after a quiet summer. Zijin Gold International Co. is eyeing a US$2 billion listing in September, while Sungrow Power Supply is planning a US$1 billion debut, according to IFR. With more than 220 IPO applications pending at the end of July, the momentum is expected to continue.
So far this year, Hong Kong has raised over US$17 billion from listings, putting it on track for its strongest fundraising year since 2021. Analysts at Bloomberg Intelligence project that proceeds could climb beyond US$22 billion by year-end.
Chery, a state-owned automaker and China’s largest car exporter, manufactures Jaguars and Land Rovers domestically. The company reported revenue of 182 billion yuan (US$25 billion) in the first nine months of 2024, underscoring its growing global footprint.
