Anhui-based auto maker Chery confirmed yesterday that the company had resumed preparations for an A-share initial public offering (IPO) amid rebounding domestic capital and auto markets.
"This year, the domestic equity market has rebounded and the auto market has also showed positive signs. Chery is confident in the A-share market," Jin Yibo, director of the executive office of the auto maker, said.
Chery is said to be planning the sale of a 20% stake and hope to raise 100 billion yuan through a domestic IPO.
"We haven't made a detailed plan. The schedule and the size of the IPO have yet to be determined," said Jin. "We will chose a good timing for the listing and announce the plan at an appropriate time."
The auto maker submitted its listing application last year but the plan was shelved as a result of the global financial crisis.
In line with national and local guidance for the auto industry, Chery and also Anhui-based Jianghuai Automobile are in talks to consolidate and restructure their assets. It has been rumored that the talks have spurred Chery to accelerate its listing plan in order to gain a bigger say in its negotiation with Jianghuai Automobile.
For more information, please consult the full Chinese coverage here:?http://epaper.thebeijingnews.com/xjb/html/2009-07/22/content_386218.htm
(China.org.cn July 22, 2009)
