By Scott Murdoch
(Reuters) – Chinese automaker Chery Automobile will aim to raise up to HK$9.15 billion ($1.2 billion) in a Hong Kong initial public offering, the largest deal of its kind for the city this year, according to its prospectus released on Wednesday.
The company is selling 297.4 million shares in a price range of HK$27.75 to HK$30.75 each. Final pricing is due to be announced on September 24, with trading expected to begin on September 25.
Chery, best known for its Chery, Jetour and iCAR brands, is seeking to tap investor appetite as it expands in the competitive electric and smart vehicle market.
The IPO will be the largest in Hong Kong this year, where capital market activity has been dominated by share sales from companies already listed in mainland China.
The largest listing in 2025 was from Chinese battery giant CATL as it raised $4.6 billion in its offering in May.
Cornerstone investors have subscribed for up to $587 million in the Chery IPO, the prospectus showed.
Chery said it would use 35% of the IPO proceeds for research and development on passenger vehicles of different models and further expand its product portfolio.
A further 25% would be spent on developing its next-generation vehicle in the next three years.
Chery said in July it would launch sales of its Chery brand in Britain with two new SUV models, joining a growing number of Chinese automakers and brands competing for share in one of Europe’s most competitive car markets.
Chery launched its Omoda brand in Britain last August, followed by its Jaecoo brand in January.
($1 = 7.7805 Hong Kong dollars)
(Reporting by Scott Murdoch in Sydney; Additional reporting Kumar Tanishk in Bengaluru; Editing by Alan Barona and Christopher Cushing)
