Geely Auto seeks US$3bil Shanghai STAR Market listing


  • Markets
  • Tuesday, 01 Sep 2020

SHANGHAI (Reuters) - Geely Automobile Holdings plans to raise 20 billion yuan (US$2.93 billion) from a public share sale on Shanghai's Nasdaq-style STAR Market to invest in new car models and technologies, exchange filings showed on Tuesday.

China's highest-profile automaker, thanks to parent group investments in Daimler AG and Volvo Cars, has set its sights on bolstering its global credentials with plans to revamp factories at home and abroad using manufacturing platforms developed with Volvo Cars.

It also aims to start European exports this year of sport-utility vehicle 01 under its premium Lynk & Co brand.

The Hangzhou-based automaker, controlled by billionaire chairman Li Shufu, posted first-half net profit down 43% at 2.3 billion yuan as sales slumped by 19% to 530,446 vehicles, hit by the COVID-19 pandemic.

Geely is targeting full-year sales of about 1.32 million vehicles, down 3% from 2019, helped by a second-half recovery in demand after the easing of coronavirus lockdowns.

Under merger talks that were suspended in July, Geely's parent group had planned to merge the automaker with affiliate Volvo Cars and list the combined business in Hong Kong and possibly Stockholm.

Geely's Hong Kong-listed shares trade at 22 times trailing earnings, compared with STAR Market's average earnings multiple of 96.

Its Shanghai listing plan could also boost the company's Hong Kong-traded shares.

Semiconductor Manufacturing International Corp's (SMIC) Hong Kong-listed shares more than doubled in the six months ahead of its Shanghai listing on July 16.

Geely's planned listing would make it the first automaker on STAR Market.

The market, with its streamlined listing process, dwarfed Shanghai's 30-year-old main bourse in the first half of 2020 to become the world's second-biggest IPO venue behind Nasdaq.

Geely has hired China International Capital Corp and Huatai United Securities as underwriters for the listing.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Geely , share sale

   

Next In Business News

Tropicana Gardens Mall expects 67% tenancy rate by year-end
KTB unit secures contract worth RM26.44mil
Celcom accelerates capex of RM825mil for network improvements to meet rapid data growth
Astro posts RM106mil profit in 3Q, declares 1.5 sen dividend
KLCI back above 1,500-level on last-minute buying
Bursa Malaysia launches Bursa Digital Research to bridge information gap among investors
China's Kaisa kicks off US$12bil debt restructuring after missing pay date
Oil adds to gains as worries over Omicron ease
Air passenger traffic to grow by over 300% in 2022
Building material cost index in Peninsular Malaysia increased between 0.1% and 1.3% in Nov

Others Also Read


Vouchers