Chery Automobile Set to Price Hong Kong IPO at Upper Range Amid Strong Investor Demand

Chery Automobile Co., China’s largest car exporter, is poised to price its initial public offering (IPO) in Hong Kong at the high end of its marketed range, reflecting robust investor interest, reported Bloomberg, citing sources familiar with the matter.

The company is expected to set the IPO price at HK$30.75 per share, up from the lower end of the proposed HK$27.75. At this pricing, Chery could raise approximately HK$9.1 billion ($1.2 billion), marking one of the largest offerings by a Chinese automaker in Hong Kong this year. The company is scheduled to begin trading on the Hong Kong Stock Exchange on Thursday.

A Chery spokesperson declined to comment on the matter.

The strong demand for the shares prompted the company to close its book-building process for institutional investors earlier than planned. The IPO has already attracted cornerstone investors, including Hillhouse Investment, who have collectively committed around $587 million in Chery shares. These investors have agreed to hold their shares for a minimum of six months following the listing.

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Chery, which produces vehicles under its own brand and assembles models for Jaguar and Land Rover in China, intends to channel the proceeds from the IPO into multiple strategic initiatives. The funds will support research and development, expansion into overseas markets, and upgrades to manufacturing facilities, aligning with the company’s long-term growth ambitions.

The IPO comes amid a surge in Chinese companies choosing Hong Kong for public listings, a trend that has pushed overall listing proceeds to a four-year high. Zijin Gold International Co., a mining firm, is preparing a $3.2 billion offering, which would be the largest IPO globally since May.

With strong backing from institutional investors and a clear growth roadmap, Chery’s Hong Kong debut highlights the continued appetite for Chinese firms in the city’s capital markets and reinforces Hong Kong’s position as a key hub for international fundraising.