Chinese carmaker Chery plans $1 billion IPO
Chery seeks $1 billion in Hong Kong IPO
Chery Holding Group Co., one of China’s leading automotive companies, has enlisted JPMorgan Chase & Co. to support the potential initial public offering (IPO) of its automotive unit in Hong Kong next year.
Sources familiar with the matter indicate that Chery Automobile Co. could raise up to $1 billion through the share sale, which is tentatively planned for the second or third quarter of 2025, reports Bloomberg.
The Chinese carmaker had previously tapped China International Capital Corp., GF Securities Co., and Huatai International Ltd. as arrangers for the listing. With the addition of JPMorgan, Chery is ramping up preparations for a major fundraising effort, which may value the company at over 100 billion yuan ($14 billion).
Chery position in the global automotive market
Founded in 1997, Chery Auto is a significant player in the global car market. Known for its Chery, Tiggo, and Arrizo brands, the company is one of China’s largest car exporters. It remains one of the few major Chinese carmakers that is not publicly listed.
As a key asset of the Chery Holding Group—which is also active in financial services and real estate—Chery Auto has been actively pursuing international growth. The company has plans to expand production facilities globally, including the development of an $800 million plant in Vietnam, which aims to begin mass production by the end of 2025.
While the IPO is expected to be a significant step forward for the company, sources note that considerations are ongoing. Details such as the timing, size, and valuation of the offering could still change, and additional banks may join the consortium of arrangers.
Additionally, Nissan Motor Co.’s stock took a hit on Monday, falling as much as 6.7%, bringing the two-day drop to an anticipated 13%.
