Great Wall Motor to push forward IPO plan

Great Wall Motor, China's largest privately owned automotive, truck and specialty vehicle manufacturer, will continue to facilitate its A-share IPO plan, Deputy General Manager Bai Xuefei said recently.

Bai said the company is seeking opportune time to go public in an effort to raise brand recognition on the mainland.

In February, the Hong Kong-listed motor producer has submitted the A-share IPO application to the Shanghai Stock Exchange and the China Securities Regulatory Commission (CSRC). However, the CSRC rejected the application in July, without giving any explanations.

According to the share offering plan, the company intended to issue up to 121.7 million shares on the Shanghai Stock Exchange, accounting for 10% of its increased capital. The proceeds from the offering were expected to fund RMB 2.8 billion (HK$3.19 billion) worth of investment.

The carmaker plans to earmark RMB 1.5 billion on R&D of vehicle parts in the second half, and RMB 1 billion to upgrade technology next year.

Great Wall Motor was listed in the Hong Kong Stock Market in 2003. It raised HK$1.8 billion (US$230 million) in the IPO and HK$1.6 billion (US$205 million) via a secondary offering in 2007.