Shanghai. March 5 (Gasgoo.com) – Beijing Automotive Industry Corporation or Beijing Auto has decided to make IPO in China’s A share market, not in Hong Kong market, senior company official has said.
After the launch of Sebring on Monday, Xu Heyi, board chairman of Beijing Auto, said reporters that different overall listings are being discussed and debated inside the company and a decision has been made: the company plans to make IPO in A share market, not in Hong Kong.
Xu did not disclose precisely how much capital would be raised under the A share IPO plan, but he said at least 2 billion yuan ($280 million) would be raised from the A share IPO.
In January this year, Beijing Auto’s ownership reform and overall listing plans were approved by city government authorities. Under these plans, Beijing Auto will go public by the end of this year.
Investment experts say Beijing has two major reasons to choose A share market: First, it is less costly and a lot simpler to IPO in A share market than Hong Kong market; secondly, it is less likely to meet ill-intended takeovers in A share market.
Besides the OEM arms of Beijing Automotive and Beiqi Foton, Beijing Auto also seeks to list an auto parts supplying business unit in A share market, Board Chairman Xu Heyi said.
Beijing Auto Group consists of three auto making companies: Beiqi Foton, Beijing Hyundai and Beijing-Benz-Daimlerchrysler.
Last year, Beiqi Foton sold 400,000 vehicles, up 16.9 percent from one year earlier. The sales figure has made the Chinese automaker world second largest commercial vehicle maker after Mercedes-Benz.
Beijing Hyundai sold 231,137 vehicles in Chinese market, a significant decrease from one year earlier. However, with the opening of its second plant earlier this year, Beijing Hyundai hopes to sell 380,000 vehicles this year.
Beijing-Benz-Daimlerchrysler sold a total 21,181 vehicles in Chinese market last year, which include 7,959 Chrysler 300 C vehicles, 6,020 Mitsubishi Outlander vehicles and 6,882 Mercedes-Benz E class vehicles.