China's FAW Group (First Automotive) will create a new company valued at CNY78bn (US$12.1bn) to launch its initial public offering.

According to a stock exchange filing, the group will inject its 47.7% and 53% stakes in Tianjin FAW Xiali Automobile and FAW Car Corespectively into the new listing vehicle and the Group will hold 99.6% of the new company.

The complicated shareholding structure and prolonged approval process has already delayed FAW’s plan to launch an IPO, becoming the third major listed auto group in China.