Core Viewpoint - Chery Automobile is launching an IPO in Hong Kong with a price range of HKD 27.75 to 30.75 per share, aiming to raise approximately HKD 84.4 billion, positioning itself as a significant player in the capital market while telling a profitable and future-oriented story [1][3]. Group 1: Valuation and Market Position - The IPO price range is set at HKD 27.75 to 30.75, with an entry fee of HKD 3,106 for 100 shares, resulting in a price-to-earnings ratio of approximately 11.19 times based on a projected net profit of HKD 14.14 billion for 2024 [5]. - Chery's market capitalization post-IPO is expected to be between HKD 160 billion and HKD 177.3 billion, ranking it seventh among Chinese automotive companies [5][6]. Group 2: Fundraising Scale and Allocation - The net fundraising amount of approximately HKD 84.4 billion positions Chery among the larger IPOs in the global automotive sector, making it the largest automotive IPO in Hong Kong for 2025 [7]. - The funds will be allocated as follows: 35% for R&D of various passenger car models, 25% for next-generation vehicles and advanced technologies, 20% for expanding overseas markets, and the remaining 20% for production facility upgrades and working capital [8]. Group 3: Industry Standing and Performance - According to Frost & Sullivan, Chery ranks as the second-largest independent passenger car brand in China and the eleventh globally, with projected sales of 2.295 million vehicles in 2024 [9]. - In the first half of 2025, Chery's passenger vehicle sales reached 1.188 million, reflecting a year-on-year increase of 14.38% [9]. Group 4: Financial Performance and Challenges - Chery's revenue grew significantly from HKD 92.6 billion in 2022 to HKD 269.9 billion in 2024, with net profit increasing from HKD 5.8 billion to HKD 14.3 billion during the same period [12]. - The company faces challenges in the electric vehicle sector, with only 28.7% of its sales coming from new energy vehicles, compared to over 50% market penetration in China [14]. Group 5: Market Confidence and Investor Support - The IPO has attracted 14 cornerstone investors, who collectively subscribed to 1.49 billion shares, accounting for about 50% of the total offering, providing strong confidence for Chery's market entry [6][10]. - The initial market response has been positive, with Chery's shares being oversubscribed nearly tenfold on the first day of the offering [3][10].
奇瑞港股IPO获近10倍超额认购！资本冷对新势力，却热捧传统车企？