Chery plans public listing to fuel expansion plans
- Source: China Daily
- [10:15 April 29 2009]
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By Gong Zhengzheng
Top executives of Chery Automobile Co unveil its new A3 model at the 2009 Shanghai Motor Show.
China's emerging carmaker Chery Automobile Co is moving closer to a domestic listing to fuel its rapid expansion, according to a top executive from the company.
Yin Tongyao, chairman and general manager of Chery, said the company has submitted necessary documents to the China Securities Regulatory Commission to issue stock in Shanghai.
The company, based in the city of Wuhu in Anhui province, is now undertaking shareholding reform in preparation for the listing, Yin said.
"Many domestic automakers are queuing up for a full listing and we hope to jump the queue," he said.
He did not reveal the timeframe for Chery's floatation and how much it plans to raise.
The company had total assets of more than 22 billion yuan by the end of 2007.
Other Chinese auto groups, such as FAW Group Corp and Guangzhou Automobile Group Corp, are also preparing for A-share listings.
The benchmark Shanghai Composite Index now hovers around 2,400 points, up one-third from the beginning of the year.
Analysts said Chery needs tens of billions of yuan to feed its independent research and development, joint projects with foreign partners and overseas expansion in the next couple of years. Public listing is one of the best ways to raise the needed capital, they said.
At the Shanghai motor show, which closed yesterday, the company displayed a record number of 32 new models under its four badges - Chery, Riich, Rely and Kerry - including a range of electric and petrol-electric hybrid vehicles.
The carmaker aims to boost sales to 419,000 vehicles this year from 356,000 units in 2008. It moved more than 100,000 vehicles in the first quarter of this year, a record quarterly high since it began production 10 years ago.
Chery is also China's biggest car exporter. It plans to ship 156,000 cars overseas this year, up from 135,000 units in 2008.
"However, the international market is plunging as a result of the financial crisis and appreciation of renminbi," Yin said.