Chery Auto, one of China’s leading automakers, is set to begin its initial public offering (IPO) on September 17 with a target valuation of 140 billion HKD (18 billion USD), according to information obtained by Chinese newspaper International Finance News.
The company passed its listing hearing on September 7 and has already launched its global roadshow. Trading is expected to commence in late September on the Hong Kong Stock Exchange.
Chery aims to raise between 1.5 billion USD and 2 billion USD (11.7 billion HKD to 15.6 billion HKD), potentially making it the largest automotive IPO on the Hong Kong exchange this year.
According to International Finance News, the funds will be allocated to several strategic initiatives: developing various passenger car models to expand the product portfolio; investing in next-generation automotive technologies and advanced R&D capabilities; expanding global market presence; upgrading production facilities in Wuhu, Anhui Province; and supplementing working capital for general corporate purposes.
This IPO represents the culmination of a 20-year journey for Chery, which first attempted to go public in 2004. After multiple unsuccessful attempts through various channels, the company finally submitted listing documents to the Hong Kong Stock Exchange on February 28, which expired after six months without a hearing. Chery resubmitted documents on August 29, finally opening the door to the capital market.
Financial data from the prospectus shows Chery’s revenue reached 92.62 billion yuan (12.87 billion USD) in 2022, 163.21 billion yuan (22.69 billion USD) in 2023, 269.90 billion yuan (37.52 billion USD) in 2024, and 68.22 billion yuan (9.48 billion USD) in Q1 2025. Net profits for these periods were 5.81 billion yuan (807.59 million yuan), 10.44 billion yuan (1.45 billion), 14.33 billion yuan (1.99 billion yuan), and 4.73 billion yuan (657.47 million yuan), respectively.
Chery’s vehicle sales reached a record 2.60 million units in 2024, representing a 38.4% year-on-year increase. Export sales totalled 1.14 million units, accounting for 44% of total sales and marking a 21.4% increase from the previous year. This performance elevated Chery from eighth to sixth place among domestic automakers.
According to Frost & Sullivan quoted by International Finance News, Chery ranks as China’s second-largest domestic passenger car brand and the eleventh largest globally based on 2024 sales. The company has set an ambitious sales target of 3 million units for this year, with 1.73 million vehicles sold and 798,800 units exported as of August.
