Chinese Automobile Giant Chery Opens to the Stock Exchange: 1.2 Billion Dollar Target

Chery's Stock Market Adventure

Chinese automotive manufacturer Chery has announced that it has filed for an initial public offering on the Hong Kong Stock Exchange. The company plans to sell 297.4 million shares at a price range of 27.75 to 30.75 Hong Kong dollars (approximately 3.57 to 3.95 US dollars).

Institutional Investor Interest

A number of institutional investors, including International Investment Fund SPC, HHHLR Advisors, Greenwoods Assets Management, Dajia Insurance Group and battery maker Gotion High-Tech, have applied to purchase class A shares worth a total of $587 million in the IPO. Chery expects to raise $1.2 billion from the IPO.

Investments and Development Plans

35 percent of the proceeds from the IPO will be spent on the development of new model vehicles, while 25 percent will be spent on electric vehicle platforms and smart technologies. 20 percent of the revenue will be used to increase the production capacity of overseas factories.

A new plant will be built in Vietnam, while the expansion of the plant in Malaysia aims to produce a total of 55,000 new vehicles.

Significant Place in Global Sales

Founded in 1997, Chery is China's largest car exporter. In 2022, global sales accounted for 32.8 percent of total revenues, rising to 47.2 percent in 2023. Forecasts for 2024 are 37.4%.

2024 targets call for sales of 2 million 603 thousand vehicles, of which 1 million 144 thousand are expected to be international sales.