Chinese automaker Chery pursues US$1.2 billion funding through Initial Public Offering (IPO) in Hong Kong
China's second-largest carmaker by volume, Chery Automobile, has announced plans for a Hong Kong stock offering to raise up to HK$9.14 billion (approximately US$1.2 billion). The offering was filed with the Hong Kong Stock Exchange on September 17, 2025.
The IPO will see the company offering 297.4 million shares, with a price range of HK$27.75 to HK$30.75. Retail investors will have the opportunity to subscribe to shares starting on September 22, and the final offer price will be determined on September 23.
If the overallotment option is fully exercised, an additional 44.61 million shares may be issued. Trading of the shares is expected to commence on September 25, with the offer closing on September 26.
About 10% of the shares will be allocated to the public, while the rest will be reserved for institutional investors. The timeline for the IPO's public subscription, final offer price determination, and share trading has not been discussed in detail.
The offering is part of a wave of mainland companies tapping into strong investor sentiment in the electric vehicle sector. However, no specific details about Chery's electric vehicle plans were provided in the filing.
In 2023 and 2024, Chery ranked second in sales among Chinese domestic car companies. The carmaker expects strong annual growth in sales in emerging markets, including South America, the Middle East, North Africa, and Asia excluding China, between 2025 and 2030.
However, the US-China trade tensions and high competition in both domestic and overseas markets could impact Chery's financial performance and business expansion. The company's success in the Hong Kong IPO will be closely watched as a barometer of investor sentiment towards Chinese automakers.
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