Chery Holding Group is eyeing a potential initial public offering (IPO) for its automotive division in Hong Kong, possibly as early as next year, reported Bloomberg, citing sources.
The Chinese conglomerate has engaged China International Capital Corp, GF Securities Co., and Huatai International to facilitate the IPO.
Sources close to the matter told Bloomberg that the group could seek a valuation exceeding 100 billion yuan ($14bn) for Chery Automobile.
The deliberations are still in progress, and the IPO's size and timing are subject to change.
The possibility of adding more banks to the roster later is also being considered.
When approached, CICC and GF Securities chose not to comment, and there has been no response from Chery and Huatai, the Bloomberg’s report said.
Hong Kong's IPO market has seen increased activity following China's economic stimulus measures, which have boosted stock prices.
Since September, IPOs have raised over $6bn, surpassing the total for the previous year. Chery Automobile stands out as one of China's major car exporters and remains unlisted, unlike many of its peers.
The Chery Group, which spans financial services and real estate, counts the automotive unit as a crucial asset.
Previously, Chery Group had contemplated listing the carmaker on mainland China's stock market.
Chery Automobile, established in 1997, markets vehicles under the Chery, Tiggo, and Arrizo brands and is pursuing global expansion, including establishing production facilities in Europe.
The company has also announced its intention to start mass production of all-solid-state batteries (ASSBs) by 2027.
ASSBs promise greater thermal stability and energy density compared to current batteries. Chery Automobile plans to initiate testing and pilot production in 2026, aiming to deliver battery electric vehicles (BEVs) with a range of up to 1,500 km per charge.
Additionally, Chery Automobile has entered a strategic partnership with South Korean automaker KG Mobility Corporation (KGM), which includes a vehicle platform licensing agreement.
This partnership is expected to enhance KGM's product offerings by providing access to advanced new energy vehicle (NEV) technologies.
