Chery adds JPMorgan for US$1 billion Hong Kong listing

CHERY Holding Group has added JPMorgan Chase to help arrange a potential listing of its automotive unit in Hong Kong next year, according to people familiar with the matter.

The Chinese group has selected JPMorgan as it moves forward with an initial public offering of Chery Automobile, which could help it raise up to US$1 billion, the people said, asking not to be identified because the deliberations are private. A share sale could take place in the second or third quarter, the people said.

Chery had picked China International Capital, GF Securities and Huatai International as arrangers for a potential listing next year, Bloomberg News reported in October. The company may seek a valuation of more than 100 billion yuan (S$18.6 billion), people familiar with the matter have said.

Considerations are ongoing and details such as timing, size and value could change, the people said, adding that other banks may also join the group of lenders arranging the share sale.

A representative for Chery did not respond to a request seeking comment, while JPMorgan declined to comment.

Chery Auto is one of China’s biggest car exporters and one of only a few not listed. It is a key asset for Chery Group, which is also involved in financial services and real estate.

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Founded in 1997, Chery Auto sells cars under brands Chery, Tiggo and Arrizo in China and abroad, according to its website. It has been looking to expand its production facilities globally, including in Europe. In Vietnam, it aims to start mass production in the first phase of an US$800 million plant by the end of 2025. BLOOMBERG