Chinese automaker Chery has filed for an initial public offering (IPO) in Hong Kong as it seeks to finance its expansion and strengthen its position in the global automotive market. The company, one of China’s leading vehicle exporters, aims to utilize the proceeds to accelerate research and development, enhance manufacturing capabilities, and expand internationally.
CICC, Huatai Securities, and GF Securities are serving as joint sponsors for the IPO, according to a listing document made public on the Hong Kong Stock Exchange on Friday. The targeted fundraising amount has not been disclosed.
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Chery remains one of the few major Chinese automakers that is still privately held. The company reported a net income of RMB 11.3 billion ($1.55 billion) for the first three quarters of 2024, reflecting a 58.5% increase year-on-year. During the same period, global sales reached 1.54 million units, a 51.8% rise compared to the previous year. Chery noted that its growth rate ranked first among the world’s top 20 passenger car manufacturers.
Since 2003, the company has maintained its position as China’s top exporter of passenger vehicles, holding the title for 22 consecutive years. In 2024, Chery sold a record 2.6 million vehicles, marking a 38% increase from the previous year. Exports totaled over 1.14 million units, up 21.4%, while sales of new energy vehicles (NEVs) surged 232.7% to 583,569 units.
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The automaker’s full-year revenue for 2024 exceeded RMB 480 billion for the first time, an increase of more than 50% from the prior year, according to figures released on January 1. Chery plans to allocate IPO funds toward developing next-generation vehicles and advanced technologies to enhance its core capabilities. Additionally, the company aims to expand its global footprint, upgrade production facilities, and strengthen working capital.
The IPO filing comes as Chinese automakers, including Chery, increasingly look to international markets for growth amid intensifying competition in the domestic auto industry.