Chery Automobile plans to raise up to HK$9.14 billion in a Hong Kong stock offering, targeting strong investor interest in the EV sector. The company aims to offer 297.4 million shares priced between HK$27.75 and HK$30.75, with an additional 44.61 million shares possible through an overallotment option.

10% of the H-share offering will be available to the public, with the rest reserved for institutional investors. Retail investors can subscribe starting Wednesday, with the offer closing Monday. Trading is set to begin on September 25. Chery’s IPO coincides with growing global interest in the Chinese EV supply chain.

Chery cited US-China trade tensions and high competition as potential challenges. The company ranked second in sales among Chinese domestic car companies in 2023 and 2024. It forecasts strong annual growth in emerging markets like South America, the Middle East, North Africa, and Asia excluding China from 2025 to 2030.

The company, founded in 1997 in Anhui province, will allocate 55% of listing proceeds to R&D for next-gen vehicles and advanced tech, with 20% for overseas expansion. Upgrading production facilities in Wuhu will absorb 10% of funds, while 10% will go to working capital. Revenue in Q1 2025 rose 24.2% year-on-year to 68.22 billion yuan.

Chery attracted over 10 cornerstone investors, including state-backed JSC International Investment Fund and the Hillhouse Group. They committed significant amounts and agreed to hold their shares for six months post-listing. The company’s revenue in Q1 2025 increased by 24.2% year-on-year to 68.22 billion yuan, with an adjusted profit of 4.86 billion during the same period.

Read more at Yahoo Finance: China’s No 2 carmaker Chery seeks US$1.2 billion in Hong Kong IPO