China’s Geely Automobile Holdings (Geely) – owner of Volvo Cars – has applied to list its shares on Shanghai’s STAR stock exchange which would make it the first automaker to be listed on this hi-tech exchange, according to local reports.
Geely, which is already listed on the Hong Kong Stock Exchange, aims to raise around CNY20bn (US$2.9bn) from the new listing which it will use to finance mergers and acquisitions and replenish working capital according to the prospectus released earlier this week.
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The company has hired China International Capital Corporation and Huatai United Securities as underwriters for the listing.
Geely reported a 23% decline in revenue to CNY36.82bn ($5.4bn) in the first half of 2020 and a 43% drop in net earnings to CNY2.32bn due to the impact of COVID-19
It sold 530,446 vehicles in the first half of the year, down 19% year on year, but is targeting a 3% decline over the full year to 1.32m vehicles thanks to a rebound in the second half of the year.
The company said it would speed up the introduction of new model in the coming years, with a particular focus on new energy vehicles.
