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Chery Automobile Plans Hong Kong IPO to Raise Up to $1.2 Billion

Gasgoo 2025-09-17 13:34:22

According to Bloomberg, Chinese automaker Chery Automobile plans to raise up to HK$9.1 billion (approximately US$1.2 billion) through an initial public offering (IPO) in Hong Kong. This IPO kicks off a busy season of major listings in the financial center towards the end of the year.

Image source: Chery

According to the listing document disclosed by Chery Automobile on September 17, China’s largest automobile exporter plans to issue 297.4 million shares at an offering price ranging from HKD 27.75 to HKD 30.75 per share, with trading expected to commence on September 25. The document also indicates that, if market demand is sufficiently strong, the IPO size may be expanded through the exercise of the over-allotment option.

Chery Automobile has joined the ranks of Chinese companies recently flocking to list in Hong Kong. The IPO fundraising amount in the Hong Kong market has now reached a four-year high. Following closely might be Zijin Gold International Co., a mining giant preparing for an IPO in Hong Kong, with a fundraising scale potentially exceeding $3 billion, which is expected to be the largest IPO transaction globally since May this year.

After a brief summer lull, billion-dollar IPO transactions in the Hong Kong market are gradually picking up pace. Previously, Chinese companies had sparked a wave of listings, raising funds to support their overseas expansion and meet the growing capital demands in the context of intensifying competition in artificial intelligence (AI).

A notable feature of Chery Automobile's IPO is the absence of Wall Street investment banks among its underwriters. China International Capital Corporation Limited (CICC), Huatai Securities, GF Securities, and CITIC Securities served as the joint global coordinators for this IPO.

Hillhouse Investment and other cornerstone investors have agreed to subscribe for approximately $587 million worth of Chery shares. The cornerstone investors are required to commit to holding the shares for at least six months upon receiving the stock allocation.

Chery Automobile is currently assembling Jaguar and Land Rover models in China. The company stated that it plans to use the funds raised from this IPO for research and development, overseas expansion, and factory upgrades.

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Chery Automobile Plans Hong Kong IPO to Raise Up to $1.2 Billion

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