Catenaa, Friday, February 28, 2025- China’s second biggest car seller, Chery Automobile, has applied for an initial public offering (IPO) in Hong Kong seeking a market valuation of $ 14 billion. a filling with the Hong Kong stock exchange said on Friday.
Chery Auto sells vehicles under the Chery, Tiggo and Arrizo brands and aims to develop new vehicles and technologies and expand production facilities in international markets, including Europe, while improving domestic production facilities.
CICC, Huatai Securities and GF Securities were listed as joint sponsors.
The filing said, Chery, China’s largest exporter of passenger vehicles in 2023 and 2024, saw net profit jump 59% to $1.6 billion in the first nine months of 2024, Revenue surged 68% to $ 25.5 billion.
Its main export markets are Russia and Turkey. It also exports to Cuba and Egypt, according to the filing.
The company is also expected to develop an $ 800 million plant in Vietnam, which aims to begin mass production by the end of 2025.
Last year, it was China’s second-biggest car seller after BYD, with 2.5 million vehicles sold, most of which were gasoline-powered cars, industry data shows.
Chery said in the filing that it considers the risk of being sanctioned by the US for operating in Russia low.
Activity in the Hong Kong IPO market is growing after the adoption of stimulus measures by the Chinese government. Since the beginning of September 2024, companies have raised more than $ 6 billion in IPOs.
