Chery Automobile Ltd. Secures Listing Approval: A Major Step Towards IPO
Summary:
- Chery Automobile Co., Ltd. has received official approval for its IPO listing hearing on the Hong Kong Stock Exchange.
- The company plans to issue up to 698 million shares and convert existing shares into publicly listed ones.
- Chery is committed to achieving high-quality listing and significant technological advancements by 2025.
On September 7, Chery Automobile Co., Ltd. received a pivotal milestone in its journey toward going public, as the Hong Kong Stock Exchange granted approval for its listing hearing. This crucial step marks an important phase in the company’s Initial Public Offering (IPO) process, solidifying Chery’s commitment to enter the public market.
According to a well-placed source, the overall progression of Chery’s IPO appears stable, further assuring stakeholders that several subsequent processes will follow this important approval. Listing hearings serve as a critical component during the auditing phase, setting the stage for a successful IPO.
Key Details of Chery’s IPO Plans
On August 27, the China Securities Regulatory Commission (CSRC) issued a notice regarding Chery’s overseas share issuance, emphasizing the following:
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Share Issuance: Chery plans to issue a maximum of 698,922,800 ordinary shares that will be listed overseas, specifically on the Hong Kong Stock Exchange.
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Share Conversion: The 18 shareholders of Chery will convert their unlisted shares in China into overseas listed shares to facilitate this transition.
- Reporting Obligations: Chery is expected to report the status of its share issuance and listing through the CSRC’s filing management system within 15 working days following the completion of this process.
These steps underscore Chery’s ambitious strategy to elevate its corporate profile on an international scale.
Corporate Objectives and Strategic Vision
During the 2025 Annual Cadre Conference held in February, Yin Tongyue, the Secretary of the Party Committee and Chairman of Chery, outlined the company’s strategic goals. By 2025, Chery aims to:
- Successfully complete its public listing.
- Achieve annual business targets.
- Enhance key operational capabilities and technological advancements.
Chery has identified high-quality listing as a top corporate priority, alongside efforts to strengthen its brand, promote international integration, and cultivate a robust management culture.
The Chery Story: A Journey Towards Public Listing
Chery Automobile stands out as one of the final unlisted automotive manufacturers in China and ranks among the largest auto exporters in the country. The company, which also has interests in financial services and real estate through Chery Holdings, has made multiple attempts to go public since 2004. Despite various challenges and setbacks over the past two decades, Chery is now poised for success.
In its prospectus, Chery reported significant revenue figures for the coming years, projecting revenues of RMB 92.618 billion, RMB 163.205 billion, RMB 269.897 billion, and RMB 68.223 billion for 2022 through 2025, respectively. The projected net profits during this period are RMB 5.806 billion, RMB 10.444 billion, RMB 14.334 billion, and RMB 4.726 billion.
Conclusion
Chery Automobile’s approval from the Hong Kong Stock Exchange represents a monumental step forward in its goal to become a publicly listed company. With strategic objectives firmly in place and a robust business model, Chery is prepared to navigate the complexities of the public markets. The company’s focus on high-quality listing, technological innovation, and international expansion will not only enhance its corporate visibility but also solidify its position as a leader in the automotive industry.
As Chery embarks on this exciting venture, its stakeholders eagerly anticipate the developments that lie ahead, marking a new chapter in the company’s storied history.
