Chinese automotive group BAIC Motor is planning to raise up to USD2bn in a public flotation on the Hong Kong stock exchange.
Last November Daimler completed the acquisition of a 12% stake in BAIC Motor, the passenger car unit of Beijing Automotive Group. In doing so, it has become the first foreign automaker to hold a significant stake in a Chinese company. Hubertus Troska, Daimler’s Greater China chief, and Bodo Uebber, CFO, will have seats on BAIC Motor’s board of directors.
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The two companies also agreed for BAIC to increase its stake in their production joint venture, Beijing Benz Automotive Company, by 1% to 51%, allowing it to be consolidated within the BAIC group ahead of its planned IPO.
Reports suggest that the IPO is now slated to raise more finance than initially planned and is scheduled for the second quarter of 2014.
The listing could be instrumental in positioning BAIC as one of China’s top tier OEMs ahead of an expected Beijing-led consolidation of the industry into a smaller number of larger internationally competitive groups later this decade.
